The size of India’s lending market nearly doubled between FY17 and FY21, with small ticket personal loans accounting for almost half the volumes. With a population of over 1.3 billion and rising consumption and income trends, India is expected to witness accelerated credit growth, as access to loans improves and digital lending expands further.
In this backdrop, Perfios’ acquisition of Karza makes complete sense, especially for rapidly growing credit markets in India and abroad, as FIs look at digitising, lending journeys for quicker onboarding, better analytics, risk assessment, and fraud prevention.
Perfios offers world-class credit decisioning and analytics capabilities in B2B and B2C segments. The company’s core platform enables aggregation and analysis of all types of financial and non- financial data, generating a wide range of consolidated insights across the credit assessment, monitoring, fraud analytics, personal finance management and account aggregation space. The Perfios product portfolio boasts of solutions like Perfios AI, Insights & CAM, for credit decisioning and integrate for customer onboarding.
Meanwhile, Karza’s unique capabilities comprise onboarding automation, due diligence, and risk and fraud analytics using state-of-the-art data engineering and deep tech. Its bespoke solutions include K:Total KYC and K:VKYC under verification and the K:Scan suite for applications like sourcing, origination, and fraud prevention and credit monitoring.
Together, the combined entity is expected to create enormous synergies by developing disruptive solutions for the lending market and also offering a broader set of products to its existing client base.
For financial institutions, this would imply dealing with a single trusted entity in the credit or customer onboarding space rather than working with multiple vendors. Moreover, both entities have the opportunity to integrate their offerings for a more sophisticated and customized experience for their existing clients. This would help lenders service more applications and do so with thorough diligence and at lower costs, thereby enhancing quicker and enhanced credit access to customers. Financial institutions seeking digitization can also benefit from a more comprehensive suite of offerings that Perfios Karza will offer.
“Together, we aim to be a one-stop shop that caters to clients across the lending process—from sourcing to collections. Perfios has established a strong presence in the credit decisioning and analytics space. Joining hands with them supports our combined vision for growth as a formidable entity that enables clients to completely automate their lending value chain,” Omkar Shirhatti, CEO, Karza Technologies said.
The acquisition also opens up global opportunities for Karza, taking its state-of-the-art solutions to geographies such as South East Asia, Middle East, and Africa, where Perfios has already established presence.
“Our acquisition of Karza helps us create immense value for our customers by further expanding our offerings in risk assessment, fraud analytics, due diligence, and onboarding, where Karza is already a market pioneer. Together, we can create synergies that can disrupt the market and serve our clients better,” said V R Govindarajan, Co-Founder and Chief Executive Officer of Perfios.
With this buyout, the combined entity will provide its customers with solutions widely spread across sourcing, onboarding, verification, credit assessment, fraud analytics, credit monitoring, and even collections apart from hyper-personalized AI -based offerings.
The acquisition is definitely a gigantic leap for both the entities and is one of the largest B2B SaaS-based product companies in India, and more so, towards accelerating innovation in the lending ecosystem.
The companies are already looking at harmonizing their offerings and solving multiple use cases to help customers gain access more sophisticated solutions and better cost savings. On a larger ecosystem level, this translates to a greater degree of value to clients, knowledge expansion across teams, and more firepower for expansion to entities.
Perfios Karza together are well on their way to accelerate end-to-end digitalisation in lending and provide a seamless experience for both lenders and their customers.
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