As a subsidiary of publicly traded PB Fintech, digital credit marketplace Paisabazaar is adopting sister company Policybazaar's strategy by creating its own offline distribution network.

One of India's biggest credit marketplaces is Paisabazaar. Through online channels, it enables customers to get credit cards, unsecured personal loans, and comparable products from both banks and non-bank lenders. As it expands its secured credit distribution strategy, Paisabazaar hopes to establish a physical location to support loan delivery.

The chief executive officer of Paisabazaar, Naveen Kukreja, told that the company has established a field team of over 100 individuals in Bengaluru, Mumbai, and Delhi to target secured credit products including home loans and loans backed by real estate.

Although they are still in the beta phases, it is also evaluating additional products, such as loans secured by securities and automobiles. It plans to grow this team to 500 members by the conclusion of current fiscal year.

In the near future, Paisabazaar hopes to raise the proportion of secured credit in its total disbursals from about 15% during the previous fiscal year to 50%. It has already grown to 33% of the overall disbursements in the past few months.

"We used to offer home loans as well, but customers would check on our platform before usually completing the transaction through their bank branch, builders, or real estate agent. We hope to close that gap in our service delivery now that we have a physical presence," Kukreja stated.

This change in approach coincides with a slowdown in Paisabazaar's disbursements, which are essential to the company's ability to generate income. Paisabazaar wants a piece of the market as the broader ecosystem moves toward products that are secure and subject to regulations.

Paisabazaar issued approximately 130,000 credit cards and Rs 3,140 crore in loans during the first quarter of FY25. It disbursed 140,000 credit cards and Rs 3,542 crore in loans during the quarter that concluded on June 30 of last year.

As an institution expands, it accumulates a balance of both secured and unsecured assets in its portfolio. We ultimately changed our approach six months ago when the RBI tightened the regulations for unsecured credit, Kukreja added.

Although Paisabazaar wants to raise the proportion of secured credit in its disbursal volume to 50%, the lower take rates, or fees, on secured loans will result in reduced revenue. However, Kukreja stated that the company's long-term goal is to co-create solutions with lenders that will enable it to receive trail revenue from their clientele.

In addition to expanding its financial services business, Kukreja hopes to provide clients with a comprehensive financial wealth management solution by utilizing account aggregator data and its extensive interfaces with other financial services platforms.

"We have had great success with our credit score product. Likewise, we want to demonstrate to our clients the finest options for savings, investments, and insurance," he stated. "Even if we don't develop transaction capabilities at this time, we want to start by giving our customers the best financial advice possible."