26 July 2024
On Tuesday, NBFC-MFI Arohan Financial Services launched a digital lending app for its existing customers having a good repayment track record to provide them an experience equivalent to that of privilege banking and to “raise collection efficiency ratio”, an official said.
As per him, the AI-powered app will provide the microfinance company the "first mover advantage" and help increase the outstanding portfolio from ₹4,500 crores, as of June 2022, to around ₹5,100 crores by the end of FY23. This will help complete the digitalization on disbursement and collection exercise of the MFI, Nambiar said.
According to the company official, during the pandemic, the collection efficiency ratio had dipped from the pre-Covid levels of around 99% to around 60-70% "Now, this has stabilized at around 95% the company official said, adding that the MFI, promoted by the Aavishkaar Group, is in the process of creating a credit scoring model, which is now "under beta testing".
The company plans to raise ₹1,800 crcroresrom the market, and the key investors of the MFI are Michael and Susan Dell Foundation, Aavishkaar Goodwell Fund II, and Tano Capital.