This alternative retail investment platform also bridges the credit gap for female entrepreneurs

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neha junejaa 37-year-old serial entrepreneur and engineer, began her entrepreneurial journey in 2008 with a consumer-facing venture in capital markets – AisaPaisa. Upon embarking on this business venture, Neha realized that there was a major gap in the market for innovative investment products.

“Most retail investors and savers who haven’t invested yet are looking for predictable and stable returns that are also high – everyone likes high returns,” Neha says in an interaction with Your story.

Later, in 2010, she co-founded Greenway Appliances and Green Ecodevelopment Pvt Ltda clean cookstove business with operations across rural India and sub-Saharan Africa, where it has developed several lending partnerships focused on women as borrowers.

For a decade, Neha has worked on the ground with microfinance operators and rural self-help groups who were distribution channels for Greenway, as well as international asset managers who offset carbon emissions through Greenway stoves.

“While I was in the field, I made a startling discovery. Lending to female borrowers or debt seekers in semi-urban and rural areas of the country was strong and growing with high yields and lowest NPAs (risk). And yet, it was cumbersome for them to apply for loans from traditional institutions that lent to them,” adds Neha.

Co-founders of P2P in India –(LR) Mohit Gupta (Product Manager), Neha Juneja (CEO), Ravinder Voomidisingh, (COO)

In July 2021, Neha, along with Ravinder Voomidisingh and Mohit Gupta launched IndiaP2P – a peer-to-peer lending platform for high yield and fixed income investment products, which also aims to be India’s vanguard for debt. At the same time, the company also wants to ensure that borrowers get loans faster and easier.

How it works?

Mumbai-based IndiaP2P harnesses new era technology and machine learning to create financial products that mitigate risk without compromising returns.

The company has launched two products – IndiaP2P Growth Plan and IndiaP2P Income Plan.

The founders claim that IndiaP2P investment products are the first of their kind in India.

“Retail investors want investments that offer high, regular and stable returns and IndiaP2P does just that – delivering up to 18% pa in predictable month-to-month earnings,” says Neha.

She adds, “There is no other competing product that matches IndiaP2P’s reward risk profile. We are able to offer this reward risk profile by making fractional high yield debt assets available to retail investors as a portfolio where our algorithm estimates the correction between each fraction and creates the riskiest portfolio. , i.e. diversified even for very small investment note sizes of Rs 5000/-.

IndiaP2P also wants to change the way credit is channeled to female borrowers. It is also the only platform where more than 95% of borrowers are women (or women-led SMEs), according to Neha.

“IndiaP2P borrowers are predominantly (>95%) women business owners who have a credit history. They have taken out at least one loan before and successfully repaid it. Indian women have better CIBIL/credit scores than men, making them safer borrowers and yet women are underserved by many traditional financial institutions.With its focus on women borrowers, IndiaP2P not only brings together safer and better borrowers, but corrects also a critical gender credit gap.

Team IndiaP2P

She adds that despite being better borrowers, women face a 2.5 times higher rejection rate than men when taking out a loan, and this is attributed to biases. “Women are forced to ask NOCs/written permission from their family members, even if they themselves are fully financially independent,” exclaims Neha.

“We have examples of borrowers who run restaurants and have taken loans from us to increase seating capacity and so on. to meet the surge in demand after Covid, some who are increasing the production capacity of their units and more”, she adds.

Certified by the Reserve Bank of India (RBI) as NBFC-P2P, the startup performs rigorous KYC, physical verification and credit verification for every loan/borrower. Investors can invest as little as Rs 5,000 and see the highest diversification of their investment with monthly returns.

The tech stack

The startup has developed its own technology stack and product modules, ranging from a borrower app, agent cloud suite, underwriting module, and most importantly, its wallet engine. proprietary that uses advanced machine learning and real-world inputs to create the least risky products.

“Using the same technology stack, we will also manufacture and launch other products, addressing different investment mandates and more,” the co-founders say.

The founding team

Neha and Mohit Gupta went to the same engineering school and worked on systematizing buy-it-now-pay-later (BNPL) programs at Neha’s former startup Greenway. Mohit is now Product Manager at IndiaP2P.

The duo met Ravinder Voomisingh when he invested in Neha’s previous startup.

Ravinder, who is the COO at IndiaP2P, is an experienced investment professional with over 14 years of experience in financial inclusion, impact investing, operational/credit risk management and managing high-value relationships.

The startup now has a 16-member team, with a network of field agents across India for due diligence and borrower sourcing.

“The idea and the opportunity to create an investment product with an unprecedented value proposition for retail investors is what brought us together,” says Neha.

Industry veterans Roopank Chaudhary, Ankit Mathur, Nagarajan Muthukrishnan, Shiji Pavithran and Rachid Mathur play an advisory role. Roopank Chaudhury, Nagarajan Muthukrishnan and Rachit Mathur are financial services industry veterans who have worked in organization building, high yield borrower lending and technology. Shiji Pavithran and Ankit Mathur have deep experience in building BNPL programs and user communities.

“As a platform, we seek the highest quality expertise to protect the interests of retail investors and create a product that is best in every way,” says Neha.

Market opportunity and business model

According to a report by CRISIL, the high-yield debt market in India is around $140 billion, with the largest portion being female microfinance borrowers.

“IndiaP2P creates investment products for this segment. Our current segment is about $50 billion,” says Neha.

The company’s business model is to manufacture investment products and then sell them to retail investors. The manufacturing side involves sourcing high-quality, high-yield debt, underwriting, processing approved debt assets through our portfolio engine, and creating the final investment product.

The YS design team

“IndiaP2P is already the fastest growing manufacturer of investment products, with over 25% of assets under management coming from existing investor add-ons in a very short period. Through our network of outreach workers, we currently reach 120,000 women borrowers in several states across the country. We are actively expanding this base to reach 1 million borrowers over the next six months,” she adds.

start-up costs Rs 300 on average as processing fee of the borrower.

Funding and way forward

In February this year, the startup lifted an undisclosed pre-seed round from Antler India.

Talking about his future, Neha says, “Our goal is to expand India’s investor base while meeting the country’s demand for credit. We are reimagining India’s financial future and soon want to become the de facto investment product for all Indians. Our most immediate milestone is to reach Rs 2000 crore AUM.

Others in the same industry include Faircent, finzy and Lendbox.

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