Real estate transaction platform Square Yards is investing aggressively in technology for its mortgage advisory business Square Capital aiming to become the largest loan aggregator in India.
ET Realty reports the company is planning to invest $2 million in its online home loan technology subsidiary Square Capital, aiming to double loan disbursements to around Rs 1,500 crore by the end of current financial year.
Square Yards entered the online home loan space more than a year ago with the launch of the Square Capital business which was intended to leverage the captive home loan business it originated from transactions taking place on its real estate platform.
The company says Square Capital soon expanded enough to generate its own business and steadily grew to be one of the largest distributors for the mortgage industry in India.
Square Yards co-founder and CEO Tanuj Shori says the mortgage business has facilitated disbursement of loans worth INR 1550 crore through its tie-ups with more than 45 banking partners.
He says the company will now scale up Square Capital with the introduction of a number of new innovations which integrate the end to end value chain in the loan segment.
As part of this expansion, a new portal, squarecapital.co.in, will be launched to take the entire loan borrowing process online.
The new fintech platform will facilitate each aspect of the home loan cycle from lead origination, credit evaluation, helping customers choose the right product acquiring the appropriate documentation right through to loan disbursal.
Shori adds the company will still differentiate itself by focusing on a disbursement model rather than lead generation alone, and is therefore currently in process of integrating the back-end systems of banking partners.
"Given the online and offline component of fulfillment varies in terms of bank integration for each category of loan, this will reduce turnaround time for the customers while lowering the cost of customer acquisition for financial institutions," he explains.
“Square Capital has been one of the fastest growing and the most profitable business for Square Yards and we want to replicate our success in real estate to the fintech industry with the aim of becoming the largest online to offline (O2O) loan aggregator and facilitator in India."
Square Capital Principal Partner & Business Head Indrajit Sidhanta confirms the business will soon add all categories of loans and financial products to our portfolio.
"We are also significantly ramping up our connector network to increase distribution reach to a larger base of customers," Sidhanta says.
"We aim to be the leader in all segments of the value chain including online and assisted online, direct business advisory and connector loan syndication businesses.”
Indiainfoline.com says India is emerging as a hub for fintech startups seeing interest from investors and venture capital funds which have pumped in huge amounts of money to the sector.
The site adds the number of fintech startups funded in the first half of 2016 equals the total number of startups funded in the sector in 2015, with exponential growth expected well into the future.
In addition the Indian government is pushing the fintech sector with its Start Up India program has given a push to this sector which is poised to .
Ffounded in 2013, Square Yards is a technology-enabled platform for global real estate. It claims to be the #1 pan-India distributor by revenues for the primary residential real estate and says it enjoys a virtual monopoly in the NRI markets.
Square Yards also operates India’s first and largest mobile-only aggregation platform, Square Connect, providing real estate brokers, independent consultants, financial institutions and online firms with access to a much larger inventory and helping them increase productivity.