PaisaDukan Success Story- Bringing Financial Inclusion through P2P Lending

The Financial sector of India is undergoing major changes. Many fintech companies are coming up with new and innovative technologies and services to make borrowing easy and lending more profitable. A new concept that is becoming quite popular these days is that of Peer 2 Peer lending or p2P lending.  A p2p platform mostly is an online platform that connects the lenders and borrowers. Under this setup, while a lender can get more interest as compared to saving his money in the bank, the borrower gets the loan for comparatively lower interest rates. As per data, in 2016, there were around 30+ p2p platforms in India. While among those only a few have been able to receive an NBFC license from RBI. PaisaDukan, a Mumbai based p2p platform is one among those that received RBI license. Established in 2017, this platform is definitely simplifying the task of acquiring loans.

Startup Name PaisaDukan.com
Headquarter Mumbai
Founder Rajiv M Ranjan
Sector Peer-to-Peer Lending(P2P Lending)
Founded 2017
Parent Organization BigWinInfotech Private Limited
Website PaisaDukan.com

About PaisaDukan
P2P Lending Industry in India
Founders and Team of PaisaDukan
How was PaisaDukan Started
PaisaDukan - Name, Tagline, and Logo
What is PaisaDukan
PaisaDukan - Launching Startup
PaisaDukan - Revenue Model
PaisaDukan - Funding and Investors
PaisaDukan - User Acquisition
PaisaDukan - Competitors
PaisaDukan - Advisors and Mentors
PaisaDukan - Awards
PaisaDukan - Future Plans

About PaisaDukan

PaisaDukan is a p2p platform that acts as a mediator between borrowers and investors. The company serves as a digital marketplace to enable borrowers to meet their financial needs, provide investors a safer and smarter investment option and aid financial inclusion. It strives to create an alternative source of financing to traditional institutional lending and weed out unscrupulous lenders by making financial tools available at fingertips.

PaisaDukan is guided by the vision to spearhead the P2P lending space and be the best marketplace for financial assistance across the country.

P2P Lending Industry in India

P2P lending in India still has a long way to go. In India, P2P Lending was started in 2012. Currently, there are around 12 players.

The existing market size of the industry is INR 200 Crore. The industry is expected to grow 200 folds making it a USD 5 Billion industry by 2023.

Relevant Read: Get Instant Loan with MoneyTap

Founders and Team of PaisaDukan

PaisaDukan Founders Rajiv M. Ranjan & Neeta Ranjan on their office desk
PaisaDukan Founders Rajiv M. Ranjan & Neeta Ranjan

Mr. Rajiv Ranjan is the Founder & CMD of PaisaDukan  

Rajiv Ranjan is a fintech expert, banking technology and operations strategist, and a visionary person with over 19 years of experience. Rajiv holds a track record of leveraging banking technology solutions to drive business value and bring back extensive expertise. This enabled him to spearhead the concept of Peer-to-Peer (P2P) lending in India and establish PaisaDukan as an NBFC-P2P lending platform. Rajiv is also the elected Secretary of the Association of NBFC P2P Lending Platforms (ANPP).

Rajiv is an alumnus of the Hindu College, Delhi University and has completed his B. Tech in Computer Science from Pune University. He is also an alumnus of IIM Kolkata. He has deep domain knowledge of financial markets, banking, retail and manufacturing segment and technical expertise in large turnkey project management, data analytics and digital payment system. He has built, managed and over-seen multi-million-dollar projects in his previous assignments with companies like Bank of America, Infosys, Blue Star Group and Welspun Group.

Rajiv Ranjan has deep domain knowledge in digital payment system, banking and retails. He was in the core team during the RBI’s digital revolution in payment systems. Rajiv was involved in some of the major path-breaking projects like Cheque Truncation System (CTS), Real Time Gross Settlement System (RTGS), National Electronic Fund Transfer (NEFT) and Negotiated Dealing System (NDS). He has been an active participant in major initiatives of the Institute of Development and Research in Banking Technology (IDRBT).  

Neeta Ranjan is the Co-Founder & Director of  PaisaDukan.

Neeta is a Master Degree holder in Electronics Engineering from the University of Mumbai. She has a vast experience of 17 years in financial technology education. She had long been associated with Mumbai and Bangalore University for an academic stint.

Currently Neeta handles a wide array of activities at PaisaDukan. On the operations front, Neeta has been one to enhance the basic lending product to a world-class digital marketplace after on-boarding several best in class service providers for easy accessibility and convenience of the customers. The scope has varied from establishing a relationship with banks, trustee, payment gateways to set up digital process for KYC checks post registration of a customer, ensuring regulatory and compliance requirements before any movement of funds as well as incorporating feedback collected on a regular basis in the service offering.

Neeta handles the grievance desk of PaisaDukan resulting in zero records of complaints till date. During her academic tenure, several technology projects were accomplished under her guidance by well-known technocrats, now successful in the industry. She has done several publications in national as well as international conferences and journals. She is a life member of Indian Society for Technical Education (ISTE) and Institution of Electronics and Telecommunication Engineers(IETE). She brings in the women representation in the Board of PaisaDukan (BigWinInfotech) and handles all the technology as well as operation initiatives for organizations.  

The other Directors on board are Suneel Mohnot and CA Uttam Prakash Agarwal. While Suneel holds over 33 years of corporate experience of working with different companies, Uttam is a CPA (Australia), FCA and ICAI(Australia), with tremendous industry experience.

PaisaDukan has employed an energetic team of MBA graduates who act as integration mediums.

The team is working under the umbrella of strong corporate governance and influential leadership. ‘Unlearning is what they say, these young minds are a perfect fit for the nascent industry of P2P lending. The team is learning as the industry is growing and turning directions.

How was PaisaDukan Started

The idea behind PaisaDukan is to mitigate credit deficiency by driving the solution digitally so that customers can easily avail credit. This in a way promotes financial inclusion.

We are deeply inspired by Govt. of India’s Digital India mission hence decided to witness India’s digital growth history and to contribute to making New India. With an aim to serve India’s traditionally underserved populace we founded PaisaDukan.com where our mission is to provide a world-class platform for borrowers & lenders. - Rajiv Ranjan, Founder & CMD, PaisaDukan
“PaisaDukan has been selected as a name keeping simplicity in mind so that even in the remotest part of India, people understand its meaning and connect the brand with money,” - says Rajiv

Established on the principles of financial inclusion in India, the name has been kept in Hindi for a wider reach. It connects to both the set of customers of PaisaDukan, one with the shortage of money and in requirement of credit – Borrower and other with an excess of funds and looking to earn interest – Investor (Lender).

PaisaDukan's tagline is, 'Right Money to Right People'

PaisaDukan Logo
PaisaDukan Logo

Relevant Read: How Crowdfunding Can Help Your Startup

What is PaisaDukan

PaisaDukan is a Peer-to-Peer (P2P) lending platform offered by BigWinInfotech Private Limited, an NBFC-P2P company. It is a digital lending platform which provides investors (lenders) an avenue for deploying their investible surplus in loan application applied by borrowers whose creditworthiness and risk evaluation gets assessed and rated by PaisaDukan.

Based on borrower’s credit score the amount, tenure and interest rates are determined. Investors can choose and fund borrowers based on their risk appetite.

PaisaDukan is pioneering the shift from the requirement of collateral to digitally sound and enabled processes through e-KYC, electronic credit assessment, electronic bank statement analysis, payment gateways, etc. thereby ensuring complete transparency and seamless experience.  

A creditworthy individual can borrow money for a variety of purposes at a rate of interest as low as 12% p.a. wherein an investor (online money lender) can lend to borrowers at an interest rate which can be as high as 24% p.a. through an alternative financial channel.

Various loan options available are-

  • Education loan
  • Auto loan
  • Loan for the senior citizen
  • Health care loan
  • Pilgrimage loans
  • Vacation loan
  • Home improvement loan
  • Small business loan
  • Marriage loan
  • Real estate loan
  • Consumer credit loan
  • Loans for the differently-abled.  

Being a Digital platform the product has PAN India reach and doesn’t involve a big capital cost that enables the company to pass the maximum benefits to end customer. This factor makes the business more sustainable.  

PaisaDukan - Launching Startup

PaisaDukan started up in Mumbai with a small team working towards bringing the platform live for customers while eagerly waiting for formal approval from the RBI to initiate operations as NBFC-P2P in India. The small, dedicated team of PaisaDukan worked so efficiently that it made PaisaDukan first company in India to receive an In-Principle approval and first new entrant in India to receive a final Certificate of Registration (CoR) from the regulator to finally start its operations. PaisaDukan was already a brand even before its start of operations under the guidance of its founder Mr. Rajiv Ranjan, an industry icon.  

PaisaDukan - Revenue Model

PaisaDukan’s revenue model is simple, for the services provided, customers are charged as per the following plans –

  1. Borrowers & Investors Registration Fee
  2. Loan Processing Fee from borrowers (of the loan disbursement amount)
  3. Success Fee from Investors (of EMI amount)  

PaisaDukan - Funding and Investors

PaisaDukan has raised more than $1 million in 4 rounds of funding.

Funding Date Funding Stage Funding Amount Investors
17 April, 2018 Seed USD 650K HNIs
07 May 2018 Seed USD 225K HNIs
Mar 2019 Seed Undisclosed HNIs
July 2019 Seed Undisclosed JIIF

PaisaDukan - User Acquisition

More than marketing strategies, PaisaDukan is focused on making the product robust to enhance customer experience and initiate word-of-mouth communication. Since PaisaDukan is promoting digital lending, it reaches out its customers through digital channels.

PaisaDukan already had established itself with strong roots owing to a robust product and diligent team, however, it was now looking for a face to take the emotions to the world and connect with them. PaisaDukan therefore, on-boarded Mr. Abhinav Kumar, the Trivago Guy on its Advisory Board to take ahead the initiative of communicating PaisaDukan to the world. With the personality of Mr. Abhinav who comes from a rural background, however, popular amongst all households having a television set gave a boost to the brand in establishing itself as a common name that could be used for credit requirements as well as investment needs.  

Some other steps which were taken by PaisaDukan to attract customers are-  

  • Partnered with some known brands of the market to gain credibility. It partnered with PayTm for payment and gateway solutions.
  • Introduced chatbot on its website during its initial days of operations to enhance customers’ awareness about P2P lending.
  • Launched a Hindi website for a better understanding of the investing and borrowing process.
  • Developed a proprietary algorithm for automated credit decisions involving alternate (socio-metric) data points to include financially excluded masses by traditional financial institutions.
  • Forayed itself into P2P lending in rural areas.
  • Tied up with Bharti AXA to enable insurance for borrowers seeking a loan.
  • Is available on the Android and iOS app  

Relevant Read: Get Hasslefree and Collateral Free Loans with Qbera

PaisaDukan - Competitors

Though there are a few other P2P platforms in India that are licensed by RBI, what makes PaisaDukan different from its competitors is the ease of business & transparency. BigWinInfotech is the first & only company in its niche to have an ISO 9001:2015 & 27001:2013 certification. Company is also a member of NASSCOM & CII.  

Since Peer-to-Peer lending is a regulated space, hence the foundation and basic principles remain common across. Value additions like credit assessment of borrowers through a proprietary algorithm on a world-class tool, offering better rates of return to investors, exercising minimal documentation, though a complete one, are some of the unique propositions for customers on the platform of PaisaDukan.

PaisaDukan.com has been able to drastically reduce the turnaround time for the availability of credit. This is due to the digitally enabled processes through the digital platform ensuring an end to end digital touch points with the flexibility of carrying out manual procedures as and when required.

PaisaDukan - Advisors and Mentors

PaisaDukan advisory board includes finance industry veterans -  

V. Balakrishnan - Mr. Balakrishnan has held various leadership positions in finance and is an expert in Corporate Finance, International Taxation, Risk Management and Mergers & Acquisitions. During his tenure, he has served as Head of BPO, Finacle & India business unit at Infosys and further as the Chief Financial Officer of Infosys Ltd; from 2006 to 2012. Moreover, he was Secretary and Senior Vice President - Finance of Infosys Ltd., from 2001 to 2006. He was a full-time Director on the Board of Infosys Limited from 2011 to 2013. Much deserved, he is also a recipient of the "Best CFO Award" from CNBC India and Finance Asia.  

Abhinav Kumar - Digital Marketing Strategist & Expert, who is also known as Trivago Guy, Abhinav has completed his masters in International Management from University of Trento, Italy. He has extensive experience in Digital Marketing. Abhinav has lead Trivago to become a major Brand in India for Hotel Search.  

Shailesh Agarwal - Shailesh is an all India 3rd rank holder Chartered Accountant & Company Secretary having more than 20 years of work experience in the area of finance & accounts. He started a career with Grasim Industries and then moved to Industrial Finance Corporation of India. Post IFCI, he has spent more than 15 years in Infosys, initially with IT then worked as Head – Corporate Accounts & India Tax.  

Rajiv Mittal – Rajiv Mittal is A business leader with 30 years of corporate experience in the domain of IT services, global consulting and education. Rajiv is experienced in advising and mentoring IT & Technology companies. He is ex CEO of JKT Consulting Ltd. and was on board of two JKT subsidiaries. As a CEO of JKT Consulting, he was responsible for strategic leadership and overall operational management of JKTC.

PaisaDukan - Awards

PaisaDukan has been awarded the “Fastest Growing Indian Company Excellence Award” by International Achievers Conference, Bangkok – Thailand.

Besides this, some other recognition received by the company are-  

  • Listed as “30 Emerging Fintech Startup in India” by INC42 & IAMAI (Internet and Mobile Association of India)
  • Recognized as “Top 10 P2P Lending Startups in India” by some prominent digital publications
  • PaisaDukan’s Contact Us page was listed amongst “Top 10 Contact Us Page” across the country by Vidsaga.

Relevant Read: Revfin- A Startup that is Bringing Financial Inclusion in Tier 2 and Tier 3 cities

PaisaDukan - Future Plans

Between July 2018 to March 2019, PaisaDukan’s P2P financing book has grown to Rs. 2 crores ($ 285k). The company’s NPA level is as low as 0.29%.  

Over the next 2 year company is focused to expand its services in rural areas not just to establish an alternate banking system in rural India but also bringing the unregulated lending in the rural segment to the regulated scenario, promoting digital lending and financial inclusion.  

PaisaDukan is also exploring new verticals for the P2P lending industry. It is exploring partners from other industry. Company is in talks with Textile Industry giants to provide loan facilities for raw material purchase, Machine parts industry to buy machine parts, travel industry giants to provide better traveling experience. The company is working to develop an AI/ML enabled digital lending product for rural areas owing to lesser document availability as well as lower brick and mortar penetration.

PaisaDukan is on a mission to achieve a wider financial inclusion through creating an alternate banking system in rural areas for all their credit needs. With the intent to contribute to the nation’s economy, the company aims to enable last mile credit facility in India to cater the under-served through Peer-to-Peer (P2P) lending and to eradicate the issue of credit deficiency in these areas.
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About Chayanika Goswami

Chayanika is an MBA in Finance and a trained Digital Marketer. SEO and content writing are her hobbies turned profession. She is a rover. In her free time, she loves traveling and cracking jokes.