BENGALURU: Sequoia-backed peer-topeer payment platform Chillr is set to offer its users the option to access micro credit, and will also expand into mutual funds and insurance soon. The startup aims to make 70-75 per cent of its revenue through these financial products in the next two years, CEO Sony Joy said. Chillr has launched a pilot with a few hundred of its 2 million users to offer credit options, offering loans of Rs 5,000 for a month, and will launch the product in phases starting June.
The startup, which enables bank-to-bank transactions, will analyse usage pattern on its app, along with bank data from partner banks, social network analysis and third-party algorithms, and scoring mechanisms to help provide credit.
“For the first phase, the loan amount is kept at Rs 4,000-5,000. Going forward, higher amounts up to Rs 50,000 will also be included, as well as dynamic amounts based on the individual’s eligibility. Based on the amount and eligibility, the period will also vary from 15 days to 180 days,” Joy said.
Chillr will work closely with its 11partner-banks on a revenue share basis for issuance of these loans. “Most partner-banks are willing to lend from their own books while a few prefer to use a third-party NBFC issuing based on banks’ data and credit scores.The KYC step is also waived off for partner-bank users as the existing KYCs in the bank can be used for credit, making it extremely simple for such users to avail the service,” Joy said.
Currently, the main source of revenue for Chillr is through utility payments, Joy said. With a big focus on financial services as a revenue generator, Chillr will also partner with asset management companies to offer mutual funds and insurance products.