CHENNAI: As the neo-banking industry is sprouting, Chennai-based startup IppoPay is getting into a micro-lending business, issuing co-branded debit cards, along with other payment solutions.
The company, focusing on the small and medium business, agri-tech, and ed-tech sectors, has partnered with non-banking financial companies (NBFCs), micro-financial institutions (MFIs) and fintech and its lending rates would range between 20% to 35%, based on the risk assessment, company’s chief strategy officer Ram Prashanth Ganesan said.Though they’re higher than the traditional banks, it's much lower than the thandal (usury) rate, which is around 60%. We are typically focusing on the unorganized and under-served sector, he added. The average ticket size would be Rs 10,000, with an upper ceiling of Rs 2 lakh for creditworthy borrowers. Its revenue model for digital lending is a collection-based fee.
Our focus is on tier-II and tier-III cities and smaller towns and 76% of our business comes from non-metro locations, K Mohan, Chief Executive Officer of Ippo Pay told this newspaper. “We’re a verticalized payment company with a full-stack solution.” IppoPay offers UPI, payment gateway, billing and invoice, and payout services.