Prashant Pitti, the co-founder of traveltech startup EaseMyTrip, is embarking on a new venture with the launch of a co-lending platform and non-banking financial company (NBFC) aimed at serving the underserved MSME market. The startup’s mission is to offer collateral-free business loans to small and medium enterprises in rural India, addressing the lack of financing options available to them.
Aiming to Fill the Financing Gap for MSMEs
Pitti’s decision to enter the MSME lending segment is driven by the significant demand-supply mismatch in credit availability. According to the Reserve Bank of India (RBI), the credit demand in the MSME space amounts to $490 billion, while the overall supply from formal sources stands at $192 billion, highlighting the underserved nature of this sector. Challenges such as inadequate working capital, insufficient bureau scores, and a lack of documents contribute to the limited financing options for MSMEs.
EaseMyTrip Background and Financial Performance
EaseMyTrip, initially a bootstrapped startup, transitioned from providing B2B SaaS solutions for offline travel agents to a B2C business model. In 2021, the company listed on the stock exchanges. Notably, in the March quarter of the financial year 2022-23 (Q4 FY23), EaseMyTrip achieved a 33.1% year-on-year growth in net profit, reaching INR 31.1 crore, fueled by robust growth in hotel and air bookings.
Competition and Market Landscape
In the competitive MSME lending segment, Pitti’s new venture will be contending with established players such as LendingKart and Indifi, among others. However, with a focus on serving rural India and providing much-needed collateral-free business loans, the startup aims to address the financing gap for MSMEs and contribute to the growth of these enterprises.
Building a New Venture Alongside EaseMyTrip
While it’s not uncommon for co-founders to venture into new startups, Pitti’s approach is unique. He plans to build and run his co-lending platform and NBFC alongside his work at EaseMyTrip. This decision reflects his commitment to making a positive impact at the grassroots level and providing meaningful financial solutions to the underserved MSME market, all while continuing to contribute to EaseMyTrip’s growth and success.
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