In a strategic move inspired by its sister company, Policybazaar, Paisabazaar, a prominent digital credit marketplace under the umbrella of PB Fintech, is establishing a physical distribution network. Naveen Kukreja, the CEO of Paisabazaar, shared that the company has mobilized a field team of approximately 100 members across major cities including Delhi, Mumbai, and Bengaluru.
As one of India’s largest credit marketplaces, Paisabazaar facilitates access to unsecured personal loans, credit cards, and similar financial products through online platforms. With the expansion into secured credit distribution, the company aims to develop a tangible presence to enhance the delivery of such loans.
In an interview, Kukreja explained that the company is currently focusing on secured credit offerings such as home loans and loans against property. Additionally, they are experimenting with products like loans secured by cars and securities, though these are still in the testing phase. The plan is to scale the field team to 500 by the end of the fiscal year.
Currently, secured credit comprises around 15% of Paisabazaar’s overall disbursals, but the company aims to elevate this figure to 50% in the near future. Recently, the share has already risen to 33% of total disbursals.
“Previously, while we offered home loans, customers often completed transactions through builders, banks, or property dealers after exploring options on our platform. By establishing a physical presence, we aim to close the gap in our service delivery,” Kukreja noted. This strategic pivot comes as the company has experienced a slowdown in disbursals, which play a crucial role in its revenue generation. With regulatory shifts prompting a focus on secured products, Paisabazaar is positioning itself to capture a portion of this evolving market. In the first quarter of FY25, Paisabazaar disbursed ₹3,140 crore in loans and issued around 130,000 credit cards, compared to ₹3,542 crore in loans and 140,000 credit cards in the same quarter last year.
“As institutions expand, they typically aim for a balanced portfolio of secured and unsecured assets. Our strategic shift followed the RBI’s recent tightening of unsecured credit regulations six months ago,” Kukreja added.
While the objective is to boost the secured credit segment to 50% of disbursement volumes, it’s important to note that revenue from secured loans tends to be lower due to reduced take rates or commissions. Nevertheless, Kukreja emphasized that in the long term, the company aims to collaborate with lenders to create products that could yield ongoing revenue from their customer base.
In line with its broader financial services strategy, Kukreja also plans to harness account aggregator data and deepen integrations with various financial platforms to provide comprehensive wealth management solutions to clients.
“Our credit score product has gained significant traction. Following that success, we aim to guide our customers in making informed choices about investments, savings, and insurance,” he stated. “Even if we don’t immediately develop transaction capabilities, our goal is to begin by offering top-notch financial advice to our clientele.”