By @Connectvj – Interview with Mr. Raman Kumar, Founder at CASHe – India’s most preferred digital lending company for young professionals.
We interviewed him to know in-depth about him & CASHe. This is the 3rd Interview of our Startup Showcase Series.
For those who don’t know what’s CASHe?
CASHe was founded in April 2016 with a mission to provide simple financial products for young salaried millennials with little or no credit history.
Banks and mainstream financial institutions have for long neglected this group of customers for years due to their lack of strong bureau credit ratings. Powered by its industry first proprietary algorithm-driven social behaviour scoring platform, the Social Loan Quotient (SLQ), CASHe has managed to bridge this gap and provide access to fast and easy credit to the near and sub-prime market segment. CASHe provides almost instantaneous loans on-demand without cumbersome collaterals and paper documentation.
Its user-friendly digital interface enables faster loan application process and quicker loan disbursals. The average time taken for a loan to be disbursed is about 10 minutes, subject to proper submission of all documents.
CASHe offers loans from INR 10,000 to INR 2,00,000 payable over 15 – 180 days. With over 350 cr. in loan disbursal, 1.3 million app downloaded and over 1,40,000 customer base, CASHe is the most sought-after lending platform for salaried millennials.How this Startup CASHe, Making Loans Available To Young Professionals Within Minutes Without Any Hassle. @Bizztor_in Click To Tweet
Explain your professional background briefly what lead you to build the company and how did you come up with the idea?
I founded CBaySystems in 1998. While initially it operations were centred in the USA and India, it went through a number of acquisitions to become MModal – a Nasdaq listed company that was eventually sold to One Equity Partners for over $1.1 billion in 2012.
Post that I became a private equity investor and a serial entrepreneur. I first set up Aeries Technology Group and moved on to establish CASHe in early 2016.
The short-term lending market in India is underserved by big financial institutions and I saw a huge opportunity to reinvent this category. Historical credit data to evaluate credit worthiness of young professionals used by the current banking and credit rating companies defies logic.
CASHe uses modern technology combined with intelligent big data analytics, predictive algorithms to map young professionals across the country based on their mobile, digital footprint and their social behaviour patterns to rate their credit worthiness.
CASHe is intensely focused on improving the financial worth of young urban professionals with its transparent and simple short-term financial products.
CASHe products are 100% app-based, user friendly, instant & digital. The total loan process is completed within 10 minutes.
What is the value proposition for the customers?
For the young professionals who often find themselves in complicated financial situations, this easy-to-use application is the best way to get rid of the tedious paperwork and human interactions.
CASHe simplifies the borrowing experience by eliminating the complexities involved in the availing of a loan. CASHe makes it simple and quick to request for a loan with minimum documentation and collaterals and without high credit scores.
An employed individual can now avail loans ranging from Rs 10,000 – Rs 200,000 payable over a period of 15-30- 90 and even 180 days though CASHe with interest rates on par with credit cards and most lower. To this we added the convenience of applying for a loan from anywhere, anytime.An employed individual can now avail loans ranging from Rs 10,000 – Rs 200,000 payable over a period of 15-30- 90 and even 180 days though CASHe with interest rates on par with credit cards and most lower. @bizztor_in Click To Tweet
Who are your ideal customers?
Any young working professional who is in the age group of 22-34 years is our ideal customer. We are happy to have helped thousands of such customers to realize their financial goals with total transparency and integrity.
What financing method did you choose to launch your company?
I invested personally and through my group companies with a seed capital of $ 5 million and then raised $ 3.8 million last year with an investor group led by Mr. Mathew Cyriac (ex-Blackstone India Head). Besides this, we have raised debt from Kotak Bank and IFMR and actively engage with other lender groups.
How do you see Digital Lending sector evolving over time?
The sector is currently undergoing a huge transformation and it will continue to evolve rapidly in the next five years. Since the arrival of the internet in the early 90s, things have moved on considerably for the lending sector.
Today, with the omnipresent use of mobile devices and smartphones, lending services are being completely transformed. Nowadays, cutting-edge technology and innovative business models, such as AI, Data Analytics and Cloud Computing are amongst the most important disruptive forces in existence.
Moving forward, the sector will see the adoption of Blockchain technology as it allows the platform to record lending and money transfer transactions in a secure and transparent manner by creating an immutable audit trail.
CASHe is an early adaptor of Blockchain and I see many in this sector realizing the importance of integrating Distributed Ledger Technology or Blockchain into their lending process.
What technological leaps are you most looking forward to in the next 5 years?
Blockchain – Blockchain technology is set to fundamentally transform the financial services. It decentralizes financial management from a central authority to a widespread network of computers. It’s no longer a question of ‘if blockchain will change the banking industry’, but ‘when’, according to the Wharton School of the University of Pennsylvania.
Contactless ATMs – ATMs are most likely to involve contactless payments. This is a much-needed innovation to mitigate large scale frauds
Augmented reality – The potential applications for this are endless. Imagine what your phone can do
The Internet of Things – Connected products like smart phones and smart watches is a major contributing factor in exponential increase in data. These smart devices are regularly gathering data, connecting to other devices and sharing that data – all without human intervention
Customer service automation – Thanks to the rise of AI, companies are increasingly turning to AI technologies to answer customers’ most common questions. By 2020, IBM predicts that 85% of all customer interactions will be conducted without a human agent.
What’s next for the company? What are CASHe’s most immediate goals and challenges?
India has over 12 crore salaried people, a majority of them are in the 22-34 years age group. This is also the fastest growing segment linked to the growth of IT and services sector in India.
What advice would you like to give the entrepreneurs planning to launch their own startup?
Entrepreneurs need to be constantly innovating. Technological innovation, adequate funding, rapid growth and hiring and retention of talent are the keys for success.Entrepreneurs need to be constantly innovating. Technological innovation, adequate funding, rapid growth and hiring and retention of talent are the keys for success. @bizztor_in Click To Tweet
If you would like to ask CASHe anything, Please use the comments section and they will personally try answer all your queries.