With this license, InPrime joins an exclusive group of startups that have received approval from the RBI to build a lending business, achieving this feat in less than five months.
InPrime aims to transform the way informal customers access formal finance in India by identifying and tapping into an untapped segment of the informal economy, which it calls the “Prime” segment.
This segment includes progressive households with multiple earning avenues, who are eager to learn and adapt to the evolving digital and financial ecosystem to advance their businesses and personal lives. InPrime recognizes the need for enhanced and tailor-made financial services for this segment, which is largely underserved by the market. By developing customized financial products, InPrime plans to cater to an estimated incremental annual credit demand of approximately Rs. 5 lakh crore, addressing an unmet need in the market.
InPrime’s hybrid model leverages digital footprints and conducts comprehensive on-field assessments to accurately evaluate customers’ needs, financial capacity, creditworthiness, and risk profiles. Additionally, InPrime plans to empower customers holistically by providing multiple repayment channels and a gamified financial and digital literacy program to promote self-service.
The company recognises that the penetration of smartphones and data has led to an increase in digital services consumption by informal customers. It will leverage platforms such as Aadhar, India Stack, UPI, and Account Aggregator to create a unique value proposition for digitally active customers, focusing on customized financial services as its core tenants.
Rajat Singh, Co-founder & CEO of InPrime said in a statement, “We are committed to making a positive impact on the informal economy in India by unlocking financial inclusion 2.0. It is a general perception that prime segment is only within the formal economy. Whereas we observe sustainable, growing and profitable informal businesses all around us. And there lies the opportunity for InPrime”. The company plans to commence operations in Bangalore in the coming months and gradually expand its presence in Karnataka and Tamil Nadu, playing a significant role in promoting financial inclusion in India.
