/ -- The digital lending platform is aiming for 10x YoY growth by partnering with some of the biggest hotel aggregators, food delivery platforms, and POS merchant platforms
India's food tech sector is at its peak right now. According to a report by RedSeer Consulting, the sector has witnessed a whopping 130% growth in CY 2018. With a tremendous rise in daily order volumes, market leaders like Swiggy, Zomato, and UberEats are pushing to get more restaurants on board to cater to the rising demand. But there's a small catch when it comes to capitalising on this trend.
While the food tech platforms have seen tons of VCs invest in their growth, from where do the smaller restaurants get money to scale up? That's where KNAB Finance, one of the leading FinTech platforms pitch in.
With larger banks finding it hard to break into this market due to barriers like inability to provide collateral-free loans, tech-enabled NBFCs like KNAB have partnered with food tech giants and made inroads into this segment. By addressing the short-term working capital needs of their end customers, KNAB has aided the growth of aggregator platforms, creating a win-win scenario. The easy eligibility criteria, minimal documentation, and flexible repayment options have made it very convenient for end users to get on board. The ease of getting an unsecured loan is a huge benefit over the tedious and time-taking processes of traditional lenders who would also demand collateral - a condition most modern service companies are unable to fulfil.
Not just food tech platforms, KNAB is increasingly onboarding hotel aggregators too. The industry, with market leaders like OYO and Treebo, has seen strong QoQ growth of 8% in the number of rooms booked. The easy financing option through Fintech platforms like KNAB is motivating hotels to partner with these new-age companies which in-turn is helping the aggregators meet the increasing demand. Even POS merchant platforms like Pine Labs, Instamojo, Mswipe etc. are hugely benefitting from such partnerships by enabling their customers to secure easy working capital loans. Factors like minimal paperwork and the option to repay through daily deduction from transactions on customer's card machine instead of EMIs have taken a huge burden off the hotels.
KNAB's tech-driven approach and thorough understanding of a business category's requirements allows it to design custom vertical-focussed solutions rather than take a one solution fits all approach. Already, 60% of KNAB's disbursals are coming from such partnerships and it is looking at a 10x YoY growth going forward.
Here's a snapshot of key benefits KNAB's product offers to the partner and its end users:
Seamless integration between partner platform and KNAB loan platform ensures fast disbursal and ease for the customer. By leveraging existing eligibility and transaction details from the partner, the disbursal process is made extremely smooth for the end customer as they have to provide minimal documentation. The partner dashboard allows quick visibility to the journey of each customer, from show of interest to final disbursal of loan. Since repayments are done through deductions on daily transactions, the end user doesn't have to worry about EMIs. So if the transactions are healthy, the user might never have to speak to the lender again. To know more about KNABs partner program, visit http://www.knabfinance.com
KNAB Finance is a non-deposit taking, tech-enabled NBFC. Its vision is to empower every MSME to apply for working-capital loans in a hassle-free manner. Driven by a customer-centric approach, KNAB uses new-age technology to assess a borrower's requirements and offer a customized finance facility. Its digital processes enable transparency, flexibility and quick turnaround for customer's convenience. A leading FinTech platform, KNAB has provided loans across 50+ cities in India. For more information, visit http://www.knabfinance.com
Source: KNAB Finance Advisors Pvt. Ltd.
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