One97 Communications Limited (OCL), which owns the brand Paytm, on Friday announced a partnership with NBFC Shriram Finance Limited to offer financial services to its users, including loan products. Through this partnership, Shriram Finance’s products will be made available on Paytm’s platform digitally to further expand access to credit and drive financial inclusion in the country.
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“This strategic partnership combines Paytm’s wide reach and technology infrastructure with Shriram Finance’s lending expertise as the largest retail NBFC in India. Powered by Paytm’s fintech leadership as a loan service provider (LSP) focussed on compliance and quality of loans, this partnership will integrate Shriram Finance wide geographical presence across the country especially rural areas,” said the fintech major in a stock exchange filing.
To start with, merchants on the Paytm network will get a chance to avail loans from Shriram Finance and then it will be extended to consumers loans.
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Umesh Revankar, Executive Vice Chairman – Shriram Finance Ltd said: “India is witnessing high growth in retail credit demand, it is only likely to increase with greater participation from rural and semi-urban India. A lot of this demand will come from digitally literate, young generation brought up in mobile telephone proliferation era and those having comfort in having all their transactions through handheld devices. To take advantage of this opportunity while staying true to our ethos of serving the unserved and underserved, and vision of becoming the most preferred financial services destination, Shriram Finance has collaborated with the pioneer of mobile payments, Paytm, across the country.”
Vijay Shekhar Sharma, Founder and CEO, Paytm said: “Our commitment to expand credit distribution gets further boost with our new strategic partner Shriram Finance. We are happy that together we will be able to create credit offerings to serve small merchant partners and entrepreneurs of India.”
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Bhavesh Gupta, President and COO, Paytm said: “Through digital distribution of credit, we are deepening access to financial services with our wide range of loan products distributed in partnership with marquee lenders. We are happy to onboard Shriram Finance as our latest marquee partner, as we continue to drive growth momentum in the credit distribution business while remaining focused on digital lending compliance and quality of loans. With Shriram Finance’s strong presence, especially in Southern India, we aim to boost access to credit by empowering users across the country with simplified loans distribution.”
Shriram Finance has assets under management worth Rs 1,85,683 Crore, 2,922 branches and employee strength of 64,052.
At 1415 hours, Paytm’s scrip on BSE was trading 0.5 higher at Rs 854.
