Addressing India's Credit Gap
In India’s lending space, the rise of digital lending platforms highlights the importance of technology in expanding financial access. mPokket was founded in 2016 with the vision to empower Indian youth by bridging the credit gap and providing access to instant personal loans.
The Inception Story
The inspiration behind its inception stemmed from personal experience when Gaurav Jalan, Founder and CEO noticed the stark difference in credit accessibility between India and the USA during his days as a college student in the USA. Witnessing his friends struggle with limited access to formal credit sources, the vision for mPokket was born in 2015.
“Our business model revolves around leveraging digital technology to offer quick and convenient loans to college students and young working professionals,” he explained.
Through its mobile app and digital platforms, they focus on algorithmic underwriting and alternate data evaluation to determine creditworthiness. This unique approach allows mPokket to serve a segment of users who usually do not have access to traditional credit facilities.
Fuelling The Growth
Sharing about the challenges he faced in the initial days, Founder and CEO, Jalan said that the industry skepticism regarding lending to college students and the non-professional segment compelled us to innovate and educate.
These challenges catalysed the development of a comprehensive customer education framework. By imparting financial literacy and highlighting the importance of timely repayments as well as the criticality of healthy credit scores, it not only mitigated perceived risks but also empowered its users to make informed financial decisions. These challenges accelerated the evolution of mPokket into a responsible, user-centric financial platform.
Scoreboard at a glance
In 2017, it raised the first round of seed funding, followed by a Pre-Series A round in 2018 and a Series A round in 2020. “Our commitment to efficient operations and unique customer acquisition strategies has enabled us to achieve profitability,” Jalan stated. As for the upcoming fiscal year 2023-24, the company anticipates a substantial revenue of Rs 1,500 crore. Meanwhile, an equity funding round is expected to take place within the next 12 months.
In the short term, we aim to double our disbursal in the current fiscal year, reaching Rs 8,000 crore. In the long term, we envision significant growth, expanding our customer base beyond the current percentage of the segment.
Next Phase of mPokket
The company plans to introduce new offerings, including loans for self-employed individuals, micro-insurance policies and buy-now-pay-later products. “As an entrepreneur, my vision for India is to foster financial inclusion and empowerment for all segments of society. I believe that access to credit and financial education can drive positive change,” mPokket, Founder and CEO, Jalan asserted.
mPokket is planning to introduce loans for self-employed individuals, micro-insurance policies for emergencies, and buy-now-pay-later products. With more than 35 lakh borrowers already benefiting from our services, mPokket has ambitious plans to increase this number to 55 lakh by the end of FY24.
