India’s PhonePe reportedly planning to launch consumer lending in January 2024
- Expansion Plan: PhonePe plans to enter the consumer lending space by January 2024.
- Integration Progress: The fintech is in the “final stages” of integrating with five lenders, including banks and NBFCs.
- Initial Focus: PhonePe aims to start as a distributor for personal loans to build credit underwriting capabilities.
- Product Launch Timeline: Over the next six to seven months, PhonePe intends to launch multiple consumer credit products, possibly introducing a credit line next year.
- Current Offerings: PhonePe currently distributes health, life, motor, and car insurance on its platform.
- Success Replication: The move into consumer credit aligns with PhonePe’s goal to replicate the success it achieved in the insurance category.
- Business Network Leverage: With over 35 million businesses in its network, PhonePe had earlier launched a merchant lending platform in June.
- Leadership Change: Hemant Gala, a longstanding executive, has been promoted to CEO of PhonePe’s credit business, having served as vice president of financial services for almost eight years.