Mumbai: Digital lending platform focusing on micro-credit for the MSME sector Happy Loans, on Thursday said that it has acquired a Non-Banking Financial Company (NBFC) IFMR Mezzanine Finance Private Limited, to use its own capital to deploy credit.
The company will be renamed Arthimpact Digital Loans Private Limited soon.
This acquisition will help Happy Loans disburse more capital and finance to micro-entrepreneurs than ever before, and reduce the cost of delivering funds to customers.
Further, through this purchase, Happy Loans strengthens its foothold in the lending ecosystem.
The company intends to use Arthimpact Digital Loans Private Limited as its lending partner, helping it scale much faster with a reduced unit cost.
"Our central objective is the eradication of barriers to growth through the provision of finance in India, and we are pleased to be able to direct and invest our own capital into the micro-entrepreneurs instead of channeling the contribution of a chain of vendors. Since our operational launch, our microlending platform and strategic alliances have helped us push over 10000 loans in just one year. Now, we shall have a vehicle to channel our own capital into promising merchants through our partners in the field," said Happy Loans' founder and MD, Manish Khera.
Since achieving the milestone of empowering over partnering with over 10 giant merchant aggregators, Happy Loans has been aggressively pursuing its engagement and provision of capital to underserved high-potential retail micro-entrepreneurs.
Through its ten partners and their exhaustive market networks, Happy Loans has access to the data and systems of multiple micro-entrepreneurs across 400+ locations in India.
With this acquisition, Happy Loans looks poised to realise their goals of rapid expansion through the financial hinterlands of India to spark growth and achieve their aim to reach 1,00,000 merchants in the fiscal year to come.