Equitas floats new IT subsidiary

The new arm is creating an e-platform to bring together truck owners and people wanting to transfer goods

Equitas Holdings, a small finance bank (SFB) license holder, has floated a new subsidiary called Equitas Technologies Private, which is creating an electronic platform to bring together truck owners and those who want to transfer goods.

The basic objective of this company is to see whether the platform can bring the customer and service provider together in a manner which makes it useful for both to operate and transact with each other. "This company is in the process of commencing operations through the portal now and hence we will have more details to share in the following quarters," the company's management said in the recent analyst call.

The management said the company is engaged in vehicle financing, including used commercial vehicles financing, and that it sees a lot of leveraging and cross-selling opportunities in that space, where its clients themselves can come onto the platform. If their ability to use vehicle increases, their cash flows will increase, and this, in turn, will improve the quality of the company's loan book.

Besides, the clients could also be potential customers for the company's future loans as a bank.