IppoPay to enter micro-lending business, payment solutions
As the neo-banking industry is sprouting, Chennai-based startup IppoPay is getting into micro lending business, issuing co-branded debit cards, along with other payment solutions.
Published: 24th February 2023 10:17 AM | Last Updated: 24th February 2023 10:17 AM | A+A A-
IppoPay (Photo | Twitter)
CHENNAI: As the neo-banking industry is sprouting, Chennai-based startup IppoPay is getting into a micro-lending business, issuing co-branded debit cards, along with other payment solutions.
The company, focusing on the small and medium business, agri-tech, and ed-tech sectors, has partnered with non-banking financial companies (NBFCs), micro-financial institutions (MFIs) and fintech and its lending rates would range between 20% to 35%, based on the risk assessment, company’s chief strategy officer Ram Prashanth Ganesan said.
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Though they’re higher than the traditional banks, it's much lower than the thandal (usury) rate, which is around 60%. We are typically focusing on the unorganized and under-served sector, he added. The average ticket size would be Rs 10,000, with an upper ceiling of Rs 2 lakh for creditworthy borrowers. Its revenue model for digital lending is a collection-based fee.
Our focus is on tier-II and tier-III cities and smaller towns and 76% of our business comes from non-metro locations, K Mohan, Chief Executive Officer of Ippo Pay told this newspaper. “We’re a verticalized payment company with a full-stack solution.” IppoPay offers UPI, payment gateway, billing and invoice, and payout services.
