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Our Target Market Is Practically Anyone And Everyone Who Has Need For Credit: Raj Khosla, MyMoneyMantra

In an interview with BW Businessworld, Raj Khosla, Founder and Managing Director, MyMoneyMantra, talks about the business model of the company, goals and more

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Raj, what led to the launch of MyMoneyMantra? What gaps are you trying to fill through your business model?
In the India of 1989, retail banking was practically non-existent. As is true in the economic lifecycle of countries in varying stages of development, India was long due for a retail revolution. We launched this venture in anticipation of the fundamental changes and to fulfill the needs of financial services requirements of the retail customers. As such, Personal Finance, i.e. Credit Cards, Home Loans, Insurances, was indeed a vast and unfulfilled requirement of Indian citizenry and that is what we proudly and happily continue to serve.

You recently raised a substantial sum (Rs 104 crore) from Vaalon Cap. How do you plan to deploy this capital?
We started our firm with an initial paid up capital of Rs. 1000 when we setup 30 years ago. Since then we have maintained regular growth of our business and have been profitable every single year of our operations. We have been successfully disrupting the retail financial product landscape for the last decade through innovative marketing and technology whilst clocking impressive year-on-year growth across our extensive product suite. This investment comes at an opportune time, as we are eager to capture an even larger share of the rapidly expanding Indian consumer market.  The capital will be used to help drive our online expansion. We will develop our reach across India, investing in technology to enable best-in-class products and service delivery to our customers. Also, for deepening our existing financial partner relationships with NBFCs, Banks and Insurance companies.

What has held you back from Mutual Fund distribution so far? Do you think there’s a future in store for direct platforms?
I am absolutely certain that there is a future for direct platforms, that’s the way consumer thinking and behaviour has been evolving. Traditionally we have been fulfilling the retail credit needs of consumers (loans, cards etc) and we will now certainly look at Mutual Fund distribution, probably next year some time.  .

Tell us a bit about your product mix. What percentage of your top line comes from loans, and what percentage from insurance?

Our endeavour has always been to establish a lifetime relationship with the customer and fulfill their financial lifecycle requirements i.e. Credit Card, Personal Loan, Home Loan. As such, our top line is evenly distributed between Credit Cards, Unsecured Loans, and Secured Loans.  

There are many portals for taking up loans these days. How do you plan to differentiate your offering and compete?
We believe setting up a portal is a relatively easy path: with investment capital one can easily set up a tech-platform and also build corresponding website traffic. It isn’t rocket-science.

Since inception customer centricity and convenience has been at the core of everything we do. We have a unique “Phygital” model wherein we engage with the customer through his preferred mode of contact i.e. physical, digital combined and then ensure fulfillment of customer needs. We have been down this path for the past three years and now have a very successful proof of concept, thus enabling a rapid scale up of our omni strategy.

What’s your target market and why?
Our target market is practically anyone and everyone who has need for credit, i.e., Credit Card, Holiday Loan, Home Loan, Business Loan etc. These needs transcend age and income brackets and therefore we are quite right in assuming that for MMM, the “world is not enough.”

Lastly, do tell us about a few of your business goals for 2020.
As mentioned earlier we are eager to capture an even larger share of the rapidly expanding Indian consumer market.  We plan to invest in and onboard best-in-class senior talent, while building a robust technology infrastructure to ensure seamless customer experience. Over 30 years of operations has enabled us to collect high quality data and we will continue to invest in the very best Data Analytics user model. We would be further expanding our national footprint and may also look at inorganic acquisitions to further accelerate growth plans.

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