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RupeeCircle The New Age Peer to Peer Finance Company

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RupeeCircle is the new age Peer to Peer finance company that strives to “make borrowing better and lending smarter”. Founded in 2017, RupeeCircle’s proprietary credit scoring model leverages data science, technology & cloud infrastructure to accurately underwrite first time borrowers and new to credit customers.

Backed by Oracle Global Startup Ecosystem Cloud Program & other marquee investors, we aim to drive financial inclusion to millions of unbanked & under-banked creditworthy borrowers in India.

We provide an online marketplace to connect creditworthy borrowers with investors looking for high return on their investments. We believe that with increasing internet penetration, digital footprints & real time analytics individuals can act as “Banks or Financial Institutions” themselves and thereby extend financial services to the last mile.

A deep dive into understanding the potential of Peer-to-Peer lending to reach the unbanked in India, is showcased in the infographic below:

 

 

The potential of Peer-to-Peer (P2P) lending to reach the unbanked in India

As per world bank estimates, approximately 11% of the global unbanked population lives in India. These 400+ million individuals are outside the reach of traditional financial institutions like Banks. NBFCs etc. due to various reasons like -

  • High cost of sales & service

More than 41% of the unbanked individuals live in rural areas. North-east India ranks the highest when it comes being financially excluded with 67% population outside the ambit of formal financial institutions.

  • Lack of consumer awareness

Majority of the Indian women still do not participate in the financial decision making and 47% of the unbanked individuals come from poor households with lack of basic financial services like credit.

  • Absence of sufficient credit history & credit bureau data

Using the data from all the major credit bureaus in India like CIBIL, Equifax, Experian & High Mark, formal financial institutions are able to reach out to less than 50% of the Indian population & more than 60% loan applications from first time borrowers get rejected annually. 55% of these unbanked individuals still use informal sources of credit at very high costs.

However with increasing internet penetration, availability of digital footprints, government focus on improving the digital infrastructure, Aadhaar Stack & rapid adoption of smartphones, new age fintech models like Peer-to-Peer (P2P) are challenging the status quo.

At RupeeCircle, we have been able to provide INR 20 million of short term unsecured personal loans to new to credit segments within the last 6 months. Leveraging P2P finance, digital footprints, cloud architecture & advanced analytics we have managed to ensure less than 1% default while at the same time providing 24% average annual returns to lenders.

“By further upgrading our machine learning algorithm & risk grading model, we are confident of reaching out to one million unbanked individuals by 2025” – Nikhil Prabhakar, Head of Marketing & Products, RupeeCircle.

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