Chinese fintech major WeCash plans India foray with a consumer lending product

Chinese financial technology giant WeCash is preparing to enter India with a consumer-lending product in partnership with banks and other financial institutions, adding to a crowding domestic market teeming with innovations.
The company, estimated to be worth about $3 billion, plans to bring to India its artificial intelligence and machine-learning capabilities that allow it to evaluate the creditworthiness of individuals with a high degree of accuracy. It will also underwrite individual borrowers.
“India has a population of more than 1.2 billion and the largest credit bureaus here have data on 300 million Indians only. Of them, around 15% have proper borrowing history. The rest are thin file and new to credit,” WeCash founder George Zhengchun Zhi told ET. “We are here to bridge the credit gap for the rest of the citizens.”
The company, which disbursed 20 million loans in China last year, expects to reach $6 billion in annual loan disbursals in India in four years. Zhi did not disclose how much WeCash would invest here but said the company considers India its second-largest market and is prepared to pump in enough capital to fuel rapid growth.
“We will not be doing balance-sheet lending as of now, but will source borrowers for banks and other lenders,” said James Chan, chief executive officer, WeCash Asia-Pacific.
The company has signed non-disclosure agreements with multiple banks in India, he said.
WeCash will be competing with domestic platforms such as Rubique, Pay-Sense and MoneyTap that too use advanced technologies to chase consumer loans in partnership with banks and other institutions. Chinese smartphone maker Xiaomi also recently entered India’s consumer-lending space by investing in microlending platform KrazyBee.
“The regulatory environment on digital lending has hardened in China, resulting in a crackdown on unscrupulous lenders. This has caused Chinese lending platforms to look for opportunities outside China… India would be one of their major bets,” said the founder of a Bengalurubased fintech company that has held multiple discussions with Chinese companies scouting for opportunities here.
“We believe in the institution-to-person lending model and that is what we are trying to stress in India and not the peer-to-peer lending or crowd-funding model,” said Zhi.
“Though we are not applying for a licence in India now, we will keep a close tab on the regulatory environment and if the government mandates, we will not shy from applying for a licence.” WeCash plans to hire more than 50 people in India by the end of the year and conduct its operations from Gurugram. The company is registered in Mumbai as an Indian subsidiary of WeCash Singapore.

Trending News

HCL Technologies may buy back shares worth Rs 5,000 Cr at Rs 1,150 apiece

Ola starts making money on each ride, inches closer to profitability

Zomato debuts loyalty rewards program PiggyBank

Chinese fintech major WeCash plans India foray with a consumer lending product

Former eBay CEO Simon Smith to drive Ola's operations in Australia

Lending products to form 20% of Flipkart’s growth: Ravi Garikipati

How Automation Anywhere joined the billion-dollar-plus club

Amazon to push hyperlocal app for Big Prime Day Sales

Are you a business or an entrepreneur thinking to collaborate ?

Here's how Amazon is winning the online retail game. Again.

DIY investment app Sqrrl raises $1 million

Flipkart all set for a fashionable makeover

Why Amazon’s Flipkart bid is just not high enough

Selling without MRP, expiry dates to cost etailers

TCS hits $100Bn market cap: A new phase for India Inc?

Snapdeal posts Rs 4,647 crore net loss in 2016-17

Flipkart-Walmart deal: What it means for the etailer and the whole industry

NCLAT stays CCI penalty of Rs 136cr on Google in search bias case

Agritech startups Sabziwala and LivLush merge their business under new entity Kamatan

Avail Finance lands $17.2M from Matrix Partners & Ola, Freecharge and Flipkart founders

RBI suggests tax sops, self-regulation to build fintech space

Swiggy hires new CEO for its Access Service, gets new CFO

Logistics company Delhivery registers 44% increase in FY17 revenues

WeWork to acquire one of the oldest social networks, Meetup

Qualcomm rejects Broadcom's $103 billion offer

EasyRewardz gets $2 million Series-A funding

'Anemic' iPhone 8 demand drags Apple shares lower

Lending platform Lenden Club gets Rs 3.5cr in Equity Investment

On festive sales, Flipkart says 65% clients from Tier-II cities