Why did we Invest in QuickLend?

​​QuickLend is a fintech startup established in 2023, based in Bangalore, focusing on “Lending against Securities” (LaS). The company aims to create a tech-first NBFC that allows individuals to secure loans against their financial assets, starting with mutual funds and expanding to stocks, bonds, and real estate. QuickLend has secured $800k in its pre-seed round. The round was led by Inuka, with participation from Eximius.

Given the evolving landscape of India’s credit market, QuickLend presents a compelling investment opportunity for several reasons:

Significant Market Demand for Secured Lending

India’s financial landscape is increasingly shifting towards secured lending solutions, driven by the Reserve Bank of India’s (RBI) initiatives to reduce non-performing assets (NPAs) in the banking sector. The RBI has raised concerns over the rising NPAs, especially in unsecured lending, which has prompted a regulatory push for more secure lending frameworks. This shift is particularly relevant given that loans below ₹50,000 ($580) have been identified as high-risk, leading to increased scrutiny and risk weights for non-banking financial companies (NBFCs).

As a result, digital lending startups are capitalising on the growing demand for secured asset-linked loans. QuickLend will focus on providing loans against mutual funds, a segment that is less explored compared to traditional lending; the market for secured loans is still in its early stages.

The growing investor base in the mutual funds, combined with awareness of the benefits of secured loans will position QuickLend to capture a significant share of the market. Additionally, they can start offering other asset-backed loans such as bonds, real estate and insurance to increase LTV.

Explosive Growth of the Mutual Fund Sector

The mutual fund industry in India has experienced remarkable growth, with total assets under management (AUM) increasing from $535 billion in June 2023 to approximately $735 billion by June 2024. This impressive increase of about 37.7% within a year highlights the burgeoning interest among retail investors in diversifying their portfolios through mutual funds. The growing popularity of systematic investment plans (SIPs) has played a pivotal role in this expansion, with the number of SIP accounts reaching a record 84 million by June 2024, and SIP AUM climbing to $130 billion.

The mutual fund sector’s growth is predominantly driven by equity-oriented schemes, which account for approximately 54% of the total AUM as of June 2024. Individual investors, including high-net-worth individuals (HNIs), represent a significant portion of this market, holding around 60% of industry assets. This demographic shift towards retail participation indicates a growing acceptance of mutual funds as a viable investment vehicle, further underscoring the potential for QuickLend to tap this market.

Moreover, India’s mutual fund industry has outperformed major global peers, achieving a 19% growth rate in the financial year 2023–24, surpassing growth rates in the US, Japan, and China. Despite this impressive growth, the market remains relatively underpenetrated, with only about 45 million unique mutual fund investors in a country of over 1.4 billion people. This presents a significant whitespace opportunity for QuickLend.

Strong Founding Team with Relevant Expertise

QuickLend’s founders are a powerhouse of professionals, each bringing a wealth of experience from their respective backgrounds in technology and financial services. Raghuram Trikutam, the CEO, has spent 17 years of experience in technology and design, and played a role instrumental in shaping successful ventures; Cred, Grab, and Flipkart, where he honed his skills in building tech products that resonate with consumers. His deep understanding of the fintech landscape, combined with a robust network of industry connections, positions QuickLend to navigate the complexities of the lending market effectively.

Arun Jadhav, Chief Product Officer (CPO), has 18 years of expertise in financial services, particularly in payments and product development. Arun’s strategic insights and execution capabilities have been proven through his successful stints at companies like Amazon and Freecharge. His experience in macroeconomic strategies equips QuickLend with the foresight needed to adapt to market changes and consumer demands, ensuring that the company remains agile in a competitive environment.

Abhishek Uppala, Chief Technology Officer (CTO), has 14 years of experience in technology development. Abhishek’s background includes significant roles at prestigious firms such as Goldman Sachs and Stripe, where he led initiatives that processed millions of transactions. His technical acumen and ability to scale products are crucial for QuickLend as it seeks to enhance its technological infrastructure and deliver a seamless user experience.

Together, Raghuram, Arun, and Abhishek form a team that understands fintech intricacies and promotes innovation and adaptability. Their combined experience helps QuickLend leverage insights from various sectors, driving growth and attracting investment. As they aim to lead the Lending against Securities (LaS) market, their strategic vision and operational excellence will be crucial for overcoming challenges and seizing opportunities in the evolving financial ecosystem.

Deep and Long-term Technical Moat

QuickLend is committed to leveraging technology to transform the lending landscape in India, focusing on streamlining the lending process for its users. By developing a user-friendly platform that facilitates lending against securities, QuickLend ensures quick approvals and minimal paperwork, significantly enhancing the customer experience. This technological integration allows QuickLend to offer competitive interest rates and flexible loan terms, making it an attractive option for borrowers seeking efficient financial solutions.

As the fintech landscape evolves, QuickLend’s tech-first approach positions it to adapt to changing market demands and consumer preferences. They will be able to add additional offerings and quickly adapt to the needs of diverse supply partners as well as users.

Conclusion

In conclusion, QuickLend stands at the forefront of a transformative shift in India’s lending landscape. By addressing the critical need for secured loans, capitalising on the explosive growth of the mutual fund sector, leveraging the expertise of its leadership team, and embracing cutting-edge tech. QuickLend is well-equipped to capture a significant share of the emerging asset-backed lending market. As the demand for secure lending solutions continues to rise, QuickLend’s mission to provide efficient and accessible lending against digitised assets positions it as a key player in fostering financial inclusion and supporting sustainable growth in India’s credit ecosystem.