Fintech unicorn OneCard and WintWealth, another fintech startup, have reportedly submitted applications for non-banking finance company (NBFC) licences. They are seeking to join the growing list of NBFCs, such as Jupiter, that have recently obtained lending licences, according to ET’s report.
OneCard Expansion Plans with NBFC Licence
OneCard, established in 2018 by Anurag Sinha, Rupesh Kumar, and Vaibhav Hathi, collaborates with South Indian Bank, Federal Bank, BoB Financial, and SMB Bank to issue co-branded credit cards. The startup also launched its first mobile metal card in 2020. With the NBFC licence, OneCard aims to expand its portfolio and venture into the personal loan segment.
WintWealth’s Investment Opportunities
WintWealth offers SIP-style aggregated debt instruments, providing less risky and high-return investment opportunities. Typically available to high-net-worth individuals (HNIs), WintWealth is looking to add more offerings, including loans against corporate papers held by customers, if it receives the NBFC licence.
RBI’s Stance on Fintech Startups and NBFC Licences
Earlier this year, there were reports that the Reserve Bank of India (RBI) had concerns about granting NBFC licences to fintech startups, primarily related to the ownership and origin of capital in these companies. Despite this, Neobank Jupiter secured an NBFC licence from RBI in April, and microlending startup ftcash received approval in November 2022.
Lucrative Digital Lending Opportunity for Fintech Startups
Digital lending has become a lucrative area for India’s fintech startups, with Kunal Shah-led CRED looking to enter the lending space for new-to-credit users. As per Inc42’s State Of Indian Fintech Report Q2 2023, the lending tech opportunity is estimated to reach $1.3 trillion by 2030. Consumer lending remains highly sought after by Indian startup investors due to the vast addressable market and increasing demand for credit-led consumption in India.
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