Paytm is expanding into Saudi Arabia, the UAE, and Singapore, increasing default guarantees to SMFG India Credit Company while appointing former bureaucrat Bimal Julka to its board. This aligns with trends among Indian fintech companies seeking growth opportunities in the Middle East and Southeast Asia.
Paytm, a prominent Indian fintech startup, is planning to expand its operations into Saudi Arabia, the UAE, and Singapore. This move aligns with a trend among Indian fintech companies looking to leverage opportunities in the Middle East and Southeast Asia, where firms like M2P Fintech, CCAvenue, and Pine Labs have already established a presence in banking and payment services.
To enhance its lending capabilities, Paytm has increased the default loss guarantees provided to its non-banking finance partner, SMFG India Credit Company, from Rs 225 crore to Rs 350 crore. As allowed by the Reserve Bank of India, fintech companies can offer default guarantees amounting to up to 5% of the loans disbursed through their partners.
In addition to these strategic moves, Paytm has appointed former bureaucrat Bimal Julka as a non-executive independent director on its board. Mr. Julka previously served as secretary to the Ministry of Information and Broadcasting. Ravi Chandra Adusumalli, also a non-executive independent director, represents Elevation Capital, one of Paytm’s early investors.
The financial technology landscape in India has seen significant growth, particularly as companies explore opportunities beyond domestic markets. The Gulf Cooperation Council (GCC) and Southeast Asia are emerging as attractive regions for expansion, and companies like Paytm aim to capture market share in these areas. Furthermore, the Reserve Bank of India’s regulations present opportunities for fintech firms to enhance their lending services, thereby supporting their growth strategies.
In conclusion, Paytm is strategically expanding its operations into key international markets, which reflects the broader trend of Indian fintech firms seeking growth opportunities abroad. By increasing its default guarantees and appointing experienced leadership to its board, Paytm is positioning itself to strengthen its lending business and pursue its expansion goals effectively.
Original Source: economictimes.indiatimes.com
