eko: Eko to disburse $1 billion worth of loans in the next three to five years
The company is looking to dispense close to $1 billion worth of loans in the next 3-5 years with flexible repayments infrastructure, the company wants to provide affordable capital and AI-backed services to MSMEs, allowing them to instill digital transformation within their operations.
“Given their role in the country’s development, something needs to be done to empower MSMEs to achieve their true potential. By leveraging top-notch technology and a sturdy infrastructure, we aim to become a one-stop platform for small-businesses that welcomes them into the world of credit, allowing them to drive their operations digitally and bolster their balance sheets,” Abhishek Sinha, Co-Founder, Eko, said in a statement.
The platform said it uses the ‘micro-credit approach’ in its services and designs them to fulfill the same. Its daily repayment infrastructure capability allows sellers to repay loans daily in part or full. They can use this credit to boost their business and serve more customers using Eko’s platform or outside of it. Their proprietary underwriting model based on transactions done on Eko’s platform offers credit to sellers and customers who lack a CIBIL score and are not a part of the formal credit system.
The company secured two significant investments of $5.5 million in 2011 and $1.5 million in 2017 from Creation Investments, which were utilized to strengthen its product development, R&D, and technological framework.
The platform recently made a turnover of Rs 200 crore in FY 20 and boasts a client base of 35 million end customers and 2,50,000 merchants. Owing to automated processes and deep-tech analytics driving its risk underwriting models, the platform is currently seeing over 50K sellers sign-ups each month, eyeing a target of 1 million sellers and a loan book of $200 million in the next 3-5 years.