[Exclusive Interview] This AI-Powered Loan App Has Disbursed Rs 11,000 Crore To 40 Lakh Youths Across 19,000 Pin Codes

Recently, we interacted with Mr Gaurav Jalan, Founder & CEO, mPokket – a new-age lending platform, that provides small and flexible loans to college students, and youths, with unique repayment plans.

Here are the interview highlights:

1.      Can you provide an overview of your fintech company’s journey from inception to its current stage of growth?

mPokket began its journey in 2016 with a singular mission: to empower India’s youth by bridging the credit gap and providing instant personal loans. Recognizing the disparity in credit access, especially among college students and young professionals, we were determined to address this challenge. Since then, we’ve grown into one of India’s fastest-growing digital lending platforms, committed to promoting financial inclusion and meeting the aspirations of our customers.

2.      What were the key milestones or turning points in your company’s entrepreneurial journey?

Our journey has seen some significant milestones. In 2016, we launched the mPokket app and secured our initial round of seed funding in 2017. In early 2018, we intensified efforts to expand the business as we fine-tuned our technology and underwriting algorithms. This period also marked the establishment of a solid product-market fit and we could see a clear path to profitability. The year 2018 was a turning point since we raised funds in a Pre-Series A round and also achieved profitability. In 2019, mPokket celebrated another major milestone by surpassing one million KYC-approved users.

Moving into 2020, we secured funding in a Series A round and diversified our offerings by introducing small-ticket loans for salaried individuals, apart from our existing services for college students. In 2020, the market environment was particularly challenging due to the first nationwide pandemic lockdown. However, we are proud to have been one of the few digital lenders onboarding new customers and disbursing fresh loans during those difficult months. Our commitment to empowering India’s youth has remained unwavering throughout this journey.

During the seven years since our inception, mPokket has witnessed remarkable growth, expanding from a small team of three employees to a workforce of 2,700-plus professionals. We now serve students and salaried individuals in more than 19,000 pin codes, pan-India. To date, we have disbursed INR 11,000 crore to 4 million borrowers. Now, we have ambitious plans to double these numbers in the coming year. The milestones reflect our resilience and ability to navigate the dynamic fintech landscape.

3.      What are your company’s current expansion plans for product/service offerings?

The ambitious expansion plans include diversifying our product offerings through loans for self-employed individuals, micro-insurance policies, and buy-now-pay-later products. Additionally, we aim to broaden our customer base and explore growth opportunities beyond India’s borders.

4.      Can you explain your company’s business model and how it differentiates you from traditional financial institutions?

Our business model is centered on providing quick and convenient loans to college students and young professionals, leveraging technology for smarter underwriting and alternative data evaluation. What differentiates mPokket is our dedication to serving segments typically overlooked by traditional lenders, that is the youth of India struggling to get access to credit and build credit scores. 

5.      With the festive season approaching, do you anticipate an uptick in the demand for digital loans? Please elaborate.

We anticipate heightened demand for digital loans during the upcoming festive season. Many people require financing for various festive expenses and our platform is well-equipped to meet their needs efficiently. We have increased our maximum credit limit from Rs 30000 to Rs 45000, looking after the needs of our customers. 

6.      What role does technology play in your fintech company’s growth strategy, and are there any recent technological advancements that have been pivotal to your success?

Technology remains at the core of our growth strategy. We leverage cutting-edge digital solutions to deliver instant loans to college students and young professionals. mPokket’s proprietary algorithm, powered by machine learning (ML) and artificial intelligence (AI), assesses creditworthiness by considering numerous factors beyond traditional credit agencies, allowing us to serve a broader audience.

One recent technological advancement pivotal to our success is the focus on enhancing user experiences via mobile apps and digital platforms. These innovations streamline the loan application process, ensuring quick access to funds. Moreover, we have implemented robust security measures along with in-house data analytics to safeguard user information.

mPokket’s growth is underpinned by the constant optimization of our platform. We continue to invest in technology – data analytics, ML, and AI – while expanding our workforce in tech-related domains. mPokket’s commitment to staying at the forefront of technological advancements enables us to fulfill our mission of empowering India’s youth with accessible financial solutions.

7.      In the competitive fintech landscape, how do you prioritize customer experience and retention as part of your growth strategy?

Given the ultra-competitive fintech landscape, prioritizing customer experience and retention is paramount to mPokket’s growth strategy. We realize that our users, primarily college students and young professionals, have unique financial needs and aspirations. To address the same, we have developed a comprehensive customer education framework. We strongly emphasize financial literacy, educating our users about responsible borrowing, timely repayments, healthy credit scores and other financial aspects. By empowering them with relevant knowledge, we mitigate risks and also foster a sense of financial responsibility.

Besides, mPokket’s user-centric approach focuses on delivering a seamless, user-friendly experience via our mobile app and digital platforms. We continuously enhance our technology, incorporating user feedback to improve the loan application process and ensure swift disbursements. Ultimately, our commitment to user satisfaction and financial well-being drives customer retention and loyalty, reinforcing our position as a trusted financial partner for India’s youth.

8.      Are there any customer-focused initiatives or improvements you’ve implemented recently?

Aside, from increasing our maximum credit limit, we have made repayment convenient for our users by providing easy EMI options. We have also adopted WhatsApp as a mode of communication to help more customers with their queries and make us accessible in a fewer taps. 

9.      How do you see your company evolving over the next few years in response to the changing market dynamics?

We envision mPokket evolving in several key ways in the upcoming years. First, we plan to sustain our robust growth trajectory, aiming to grow 100% in the coming year by disbursing INR 8,000 crore. Expanding our bouquet of services is also a priority. We intend to introduce buy-now-pay-later products, micro-insurance policies for emergencies and loans tailored for self-employed individuals. These additions will cater to a broader range of financial needs, further enhancing our relevance.

Moreover, we are exploring opportunities for international expansion, leveraging the knowledge and experience gained in the Indian market. This global perspective aligns with our mission to empower youth in India and other markets. Our commitment to data security and privacy will remain unwavering, with ongoing investments in data analytics, ML and AI to make informed credit decisions while safeguarding user data.

Overall, our ongoing journey is characterized by continuous innovation, wider service offerings and a deeper commitment to financial inclusion, as we aim to become the most comprehensive financial partner for India’s youth and other cohorts.