Satyam Kumar, Co-Founder, Loantap
Satyam Kumar is the co-founder of LoanTap, a fintech platform delivering flexible loan products to salaried professionals. Satyam has an MBA in Marketing from University of Pune and has completed Honors Program in Chemistry from University of Delhi. He carries over 17 years of experience in key account management, product development, multi-cultural team handling and building businesses from scratch. In conversation with ADC, Satyam speaks about his whole new set of product category, which will cater to the millennial's financial needs.
What drives you?
I would say, creation is the word that drives everyone. Both Vikas and me have been part of large organisations and we decided to come together and create a whole new set of product category. Products that cater to millennial's financial needs, a product which is relevant and available on the go.
How big is the potential for a business like yours? Any major customers that you now cater to? What kind of numbers do you expect from a business like yours? Any statistics to compare with international standards?
Overall personal loan segment (unsecured loans) is USD 1900 Bn. So, the segment is huge but at the same time we have well entrenched players here. This is where product innovation plays a role.
This is pure retails business, so employee from every sector and all leading firms apply and avail loan regularly.
We are looking at USD 1.15 Bn loan book in 3 years.
Internationally many banks and financial institution have online only model, we intend to be in the same league.
How do you plan to scale up; raise funds through seed or venture capital or simply grow the old fashioned way through rising turnovers?
Banks are biggest source of fund for loan companies. So, we will be heavy on debt. But to meet capital adequacy ration and other regulatory norms we will continue to infuse equity in the firm. Typically, you can leverage upto 6-7 times of your net owned fund.
Who would primarily be your consumer audience?
Millennials, born in 80s. Target segment is 22- 36 year old, slightly stable in job, about 2 years of experience.
Where do you see yourself five years down the road?
Our first planning cycle is 3 years. We shall be catering to 15-16 locations in India and disbursing 4000 plus loans every month. We should be exiting March 19 at the rate of USD 120 Mn monthly disbursal.