Indel Money adopts digital hybrid model to expand its operations. Mumbai headquartered and South India based non-banking finance company Indel Money has adopted a digital-focussed hybrid model for its expansion, in which they would be opening more than 200 brick-and-mortar branches across India by FY24. The expansion drive will feature the proliferation of its digitally-enabled doorstep gold loan facility parallel to the traditional brick-and-mortar framework.
Indel Money presently has 191 brick n mortar branches in Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana and aims to take the branch tally to 400 by FY24. The company has plans to open 50 branches in Odisha and Maharashtra in Q4FY22 and 45 branches in Gujarat and West Bengal in Q1FY23.
To expand the doorstep gold loan facility which targets business owners and professionals looking for gold loans of Rs.2 lakh and more, Indel Money will be following a hub and spoke model, ensuring superior service delivery. The first pilot project of the doorstep gold loan facility has been successfully carried out in Bengaluru in January 2021 and the second phase of the pilot project will be underway in Hyderabad and Chennai in September.
“Gold loan demand will remain high because of the continued credit crunch in the market. Our doorstep gold loan facility will offer easy credit to entrepreneurs and professionals who are hesitant and pressed for time. On the other hand, our long-term two-year gold loan has managed to develop strong traction among young entrepreneurs as an alternate capital to kick-start their journey.
The hybrid model which combines both digitally-enabled doorstep gold loan and its hub in conventional brick-and-mortar format will help us penetrate major city markets like Mumbai, Ahmedabad, Patna, Chandigarh, Rajkot, Delhi, Lucknow etc. Instead of carpet bombing a specific region with a large number of branches, “we are focusing more to set up branches in strategic locations capable of delivering more yields in terms of AUM,” said Umesh Mohanan, Executive Director and CEO, Indel Money.