BharatPe launches new consumer FinTech product- 12% Club
By Leandra Monteiro
BharatPe, one of India’s fastest growing FinTech companies, recently announced its foray into the consumer space with the launch of its consumer product- 12% Club. Available on Google Play Store and Apple App Store, this product aims to redefine the rules of consumer lending and investments.
With 12% Club, consumers will have an option to invest and earn upto 12% annual interest or borrow at a competitive interest rate of 12%. BharatPe has partnered with RBI approved NBFCs to offer this investment-cum-borrowing product for consumers. The company aims to achieve an investment AUM of US$ 100 million and a lending AUM of US$ 50 million from this product, by the end of the current fiscal.
The consumers on the 12% Club app can invest their savings anytime by choosing to lend money through BharatPe’s partner P2P NBFCs. Additionally, consumers can avail collateral-free loans of upto INR 1 million on the 12% Club app for a tenure of 3 months, as per their convenience. There are no processing charges or pre-payment charges on the consumer loans. The loan eligibility will be defined based on a number of factors including consumer’s credit score, the shopping history using PAYBACK loyalty system or the payments done via BharatPe QR.
The consumers investing via the 12% Club app can put in a request to withdraw their investment anytime, partially, or completely, without any withdrawal charges. They can start their investment journey by investing as low as INR 1000 and enjoy daily credit of interest. The upper limit for investment by an individual is currently set at INR 1 million and would be increased to INR 5 million over the next few months.
Commenting on the launch, Suhail Sameer, Chief Executive Officer, BharatPe said, “As we begin our journey on the consumer side, our focus will be to launch products that are industry shaping, 100% digital and easy to use. This one-of-its-kind product for consumers has been designed to ensure industry-best benefits both for lenders, as well as borrowers. We believe that 12% Club will strike the right chord with a diverse set of new-age digitally savvy customers- from young salaried individuals, to professionals with disposable incomes, as well as the investors who park their funds in various financial instruments. The initial response has been phenomenal. In the pilot phase, we have seen great traction with US$ 5mn of monthly investment run rate and US$ 1mn of monthly borrowing run rate. We are confident that this product will be well received in the market and will play a key role in driving financial inclusion in the country. This is just the beginning and we will be adding new customer products during the rest of the financial year.”
Added Suhail, “BharatPe’s P2P lending product for merchants has been one of our industry defining products with Gross Investments of close to US$ 700mn done by over 6.3 lac merchants. Also, we are one of the largest B2B Fintech lenders in the country, having disbursed over US$ 300 mn in business loans to over 2 lac merchant partners”.
Recently, BharatPe forayed into the unicorn club with Series E fund raise of US$ 350 mn at a valuation of US$ 2.85 bn. The round, led by Tiger Global, also saw new participation from Dragoneer Investment Group and Steadfast Capital. Five out of the seven existing institutional investors participated in the round – namely Coatue Management, Insight Partners, Sequoia Growth, Ribbit Capital and Amplo. BharatPe is now amongst the Top 5 most valued Fintech startups in India, and has one of the strongest cap tables for any start-up in India.
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