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Key Points:
- Easemytrip founder, Prashant Pitti, launches a new lending venture called Optimo Loan.
- Optimo Loan secures $10 million in funding from Blume Ventures, Omnivore, and Pitti.
The article discusses how Optimo Loan aims to bridge the $530 billion credit gap in MSME lending in India by leveraging technology and a co-lending model. Pitti, who was previously associated with financial institutions like Capital One and HSBC in the US, spearheads the venture. The startup plans to establish itself as an asset-light company by primarily using co-lending agreements with banks and larger NBFCs. It aims to provide credit to the MSME sector using a phygital distribution model and underwriting methods to gain insights into the financial health of its customers.
With only 25% of MSMEs having access to formal credit, there is a huge opportunity in this sector. Players like Lendingkart and Indifi have seen profits in the last financial year and are focusing on building strong co-lending models for small businesses. Optimo Loan started its lending operations in November 2023 and is scaling rapidly.
