Delhi-based loan distributor company Andromeda has acquired Mumbai-based online loan provider Apnapaisa for an undisclosed amount in a stock cum cash deal.
With Apnapaisa’s acquisition, Andromeda plans to increase trends of digitization and the tech-edge that apnapaisa brings would drive the growth of Andromeda.
Founded in 2007 by Harsh Roongta, ApnaPaisa is an online marketplace for financial products like loans and investments which empowers consumers to take informed decisions by providing a comprehensive comparison facility thus simplifying their research process. The company has helped more than 2 Mn customers to find the best possible deal on home, personal, business loans as well as loan against property.
Commenting on this acquisition Naresh Daga, Co-founder and CEO, Apnapaisa said, “The acquisition is not just for generating additional business, it is also aimed to benefit from the management strength of apnapaisa to digitize the existing business and also to increase our portfolio in products like credit cards and personal loans which are rapidly going digital. Lending is a complex business and requires contextual intervention, particularly in secure products. With the housing sector slated for rapid growth across the country, this acquisition will further consolidate our pre-eminent position.”
Andromeda founded in 1991 is a distributor of loans, mortgage, financing and financial instruments such as credit cards, home loans, unsecured business loans, and car loans. It has presence in more than 30 cities across the country and distributes loans around $12 Bn (INR 8000 Cr.) annually. The company has a customer base of more than 1 lakh.
V Swaminathan, CEO, Andromeda said, ”with impeccable track record in the loan distribution business over the last 15 years, it is natural for the company to accelerate its process of growth by leveraging Apnapaisa’s digital strength. We are known for professional, efficient and transparent service standards and moving into online space would further strengthen our well-established track record.”
Andromeda is also planning to expand to 100 cities from the current level of 30 cities in future. Both tier I and tier II cities will be part of this expansion plan as housing finance requirement is expected to witness a sharp increase.
