BankBazaar, a fintech specialising in co-branded credit cards and credit score services, has partnered with Muthoot FinCorp, a NBFC and the flagship Company of Muthoot Pappachan Group to enter the secured loans market with a gold loan product.
BankBazaar, a fintech specialising in co-branded credit cards and credit score services, has partnered with Muthoot FinCorp, a NBFC and the flagship Company of Muthoot Pappachan Group to enter the secured loans market with a gold loan product.
As part of this collaboration, Muthoot FinCorp has also invested in BankBazaar’s ongoing Series D2 round as an equity investor to further strengthen the digital platform.
BankBazaar has secured ₹55 crore in fresh funding from a group of investors, including Muthoot Fincorp and existing investor Walden International, bringing the company’s total equity funding has now reached $116 million. Of this, ₹15 crore investment has been made by Muthoot FinCorp which gets about 1% stake in the fintech firm.
Under the partnership, BankBazaar will handle digital data management, digital marketing, product education, digital customer experience, credit score improvement via prudent financial literacy, and consumer education, while Muthoot FinCorp will manage KYC compliance, verification, valuation, storage, loan disbursal and all other guidelines ensuring same-day loan disbursal via a seamless phygital lending experience.
Adhil Shetty, CEO, BankBazaar, said, “This partnership unites two trusted brands—a 138-year-old business conglomerate and a 17-year-old fintech platform. Gold loans, being countercyclical to unsecured credit, will diversify our portfolio and strengthen our offerings. BankBazaar’s consumers will gain seamless digital access to Muthoot FinCorp’s high-quality, fully compliant gold loan products.”
“We are pleased to announce our partnership with BankBazaar, one of the country’s leading fintech firm, leveraging their extensive customer base and cutting-edge analytics capabilities to drive superior customer experience, ensuring more inclusive credit access, including those who’ve been impacted by temporary financial setbacks. This significant collaboration is poised to be a major milestone in our journey to deliver seamless credit solutions, empowering individuals to achieve their goals and aspirations,” said Shaji Varghese, CEO of Muthoot FinCorp.
Pankaj Bansal, Chief Business Officer, BankBazaar.com, said, “Nearly 65% of gold loans are still offered by unregulated players, underscoring the urgent need for secure, high-valuation financing at fair rates. We are excited to partner with Muthoot FinCorp, a trusted leader in gold lending, to offer a seamless, digital-first gold loan experience that combines convenience with the assurance of capital protection and affordability.”
BankBazaar has seen significant growth, with a 62.5% increase in co-branded credit cards in FY24 and an expected 46% annual revenue growth from FY22 to FY25. The company anticipates achieving full-year EBITDA profitability in FY25.
