Indifi introduces unsecured loans this holiday season
With India passing the billion dollar mark for COVID vaccination, restrictions on travel and restaurants are lifted in most parts of the country. To add to this, the holiday season mixed with the ongoing cricket fiesta with tournaments like IPL and ICC World Cup T20, has fueled the long awaited buzz in Indian markets.
According to a report by Dineout, restaurants in several cities are operating at twice their capacity compared to February 2021. This buzz in the market is an opportunity for restaurateurs to end their financial drought of more than a year and a half , but growing demand calls for some liquid financial support for companies so that they can capitalize on the opportunity. Traditionally, a loan from a bank would require a lot of financial documentation that most new restaurateurs would lag behind.
It is now for the growing acceptance of digitization and the rise of fintech platforms in the country that these small restaurateurs can benefit from unsecured loans this holiday season. One of those growing players in the lending space, Indifi, said it has disbursed more than 37,000 loans, of which restaurants account for about percent.
Indifi’s customers are both catering and delivery restaurants and are now also expanding into cloud kitchens. The average loan size for this segment is Rs 4-5 lakhs and around 15 percent of loan disbursements go to Tier 3 and 4 cities. Additionally, even though the restaurant industry is a risky industry, 40% of loans granted to restaurants have been granted for less than 2 years. Much of this is because of Indifi’s ecosystem approach, where partnerships with leading technology aggregators such as Swiggy and Zomato have supported efforts to enable funding for creditworthy restaurants, he said. in a press release.
Alok Mittal, CEO and co-founder of Indifi said; “The current holiday and cricket season is a great opportunity for these new restaurateurs to take advantage of the long awaited drought in the area and we are happy Indifi is contributing to this change in their lives. In the near future, we are looking to expand our reach within existing partnerships and build relationships with new aggregators in this space. The catering activity is starting up again, our objective will be to respond to new players in the sector ”.
A large part of the loans disbursed by Indifi were used by restaurateurs for the renovation of their point of sale (s) or for the opening of new points of sale. The proceeds were also used to settle debts, make internal payments and to market the brand during the holiday season, he added.
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Posted on: Friday October 29, 2021, 3:51 PM IST