Press Release

IIFL leverages FinBox’s Embedded Finance offerings to digitize credit access to MSMEs

Disbursing Rs. 1,000 crores in loans in the next 2 qtrs

As originally published on mint.

Bangalore, August 12th 2021

IIFL Finance — a leading finance and investments company — has partnered with Bangalore and Gurgaon based FinTech, FinBox, to offer innovative digital credit products to its merchants.

The investment services company will offer digital credit avenues to its merchants, B2B E-Commerce traders, using FinBox’s embedded buy-now-pay-later (BNPL) and working capital credit products.Through this partnership, IIFL and FinBox will disburse INR 1000 Cr in loans over the next 2 quarters, through a completely digital model.

Rajat Deshpande, Co-founder and CEO of FinBox, said “The FinBox Embedded Finance Platform powers credit on multiple B2B E-Commerce and retailer aggregator platforms. Partnering with IIFL provides us the flexibility and agility to launch innovative credit products for merchants at best-in-class rates. BNPL credit is the lifeblood of B2B E-Commerce and trade. Just like cash-on-delivery kickstarted the Indian B2C E-Commerce story, seamless access to cash flow based BNPL financing is fueling B2B E-Commerce.”

“Partnering with FinBox enables us to access borrowers through its deep partner network with a single integration and offer our credit products digitally. We have collaborated deeply with FinBox’s low-code platform to make our lending process entirely digital and hassle-free.” said Sanjeev Srivastava, Chief Risk Officer, IIFL

“Additionally, FinBox’s proven AI/ML powered underwriting capability enables us to extend credit even to MSMEs with thin-to-no credit history. We are launching multiple new age credit products for the retailer and MSME space through the FinBox Embedded Finance Platform.", Srivastava added. 

B2B BNPL is garnering increasing attention globally as people shift their purchase and expense habits owing to COVID-19’s repercussions on liquidity. BNPL products enable merchants to manage fluctuations in demand, keep a well-stocked shop and expand as needed during the festive season, all the while reducing cash collection and logistics complexities for their distributors. 

The FinBox Embedded Finance Platform helps every company become a lending company by solving most complex parts of the value chain and bringing them together on a low-code platform. Using the FinTech startup’s offerings, lending organizations can benefit from lower costs per loan, thereby increasing their profitability by as high as 55%. Lenders, NBFCs, banks and startups in the space have also reduced delinquency / default rates by 22% owing to the FinTech's low-code, high efficiency tech stack that brings precision and credit data from over 10,000 data indicators.

"Our partnership driven model enables us to incorporate platform data to create innovative credit products that engenders a win-win dynamic between digital platforms, borrowers and lenders."  added Rajat Deshpande, Co-Founder and CEO of FinBox. “Embedded credit is the next big wave in FinTech. This partnership will play a crucial role in transforming the credit ecosystem in India”

 

About IIFL

IIFL Finance is one of India's leading retail focused NBFCs with a loan book of more than ₹40,000 crores. IIFL has deep experience in partnering with digital platforms and is committed to digitizing credit in India. It offers multiple credit products such as business loans, home loans and gold loans to multiple customer segments. 

About FinBox

FinBox is a B2B FinTech that enables lending for MSMEs. It facilitates effective collaboration between lenders and digital platforms by combining its tech-first approach with deep underwriting expertise and competence in distributing financial products. By providing lending as a feature, it reduces the barrier to entry by 10x for customer-facing digital platforms to offer credit on their platform. Lenders adopt the FinBox Embedded Finance platform to rapidly digitize their offerings and widen their reach.

Resources

What is Embedded Finance - https://finbox.in/blog/finbox-big-data-driven-cross-selling-for-retail-lenders/ 

Difference between digital lending and Embedded Finance - https://finbox.in/blog/embedded-finance-credit-digital-lending-partnerships/

Introduction to the FinBox Embedded Finance Platform - https://finbox.in/blog/introducing-finbox-embedded-finance-platform-embedded-credit/

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Madchatter Brand Solutions Manasvi Thakur PR Manager +91 83298 67688 manasvi@madchatter.in

Aryan Ghosh Senior PR Executive +91 98323 16357 aryan@madchatter.in