One97 Communication Ltd, which runs mobile wallet firm Paytm, said on Tuesday it has picked up a stake in Mumbai-based fintech startup CreditMate.
CreditMate helps two-wheeler dealers and financiers assess and approve vehicle loans to customers with no formal credit history, Paytm said in a statement.
It did not disclose the stake it bought or the amount it paid. However, Paytm would partner with CreditMate—operated by Urja Money Pvt. Ltd— as it seeks to expand its presence in the lending business.
Madhur Deora, senior vice president and CFO at Paytm, said the company aims to help consumers, including small-scale entrepreneurs and self-employed individuals, avail of credit based on a proprietary loan management system.
“We believe that CreditMate will be a valuable and long-term partner towards our efforts to cater to the unorganised sector,” he said.
Jonathan Bill, co-founder and CEO of CreditMate, said Paytm’s investment will allow the startup to expand its operations, distribution, lending partnerships and technology to help a wider set of consumers.
Vijay Shekhar Sharma-led Paytm, backed by SoftBank and Alibaba and valued around $9 billion, has been making strategic acquisitions and investments in consumer internet and fintech firms that complement its businesses including payment bank, mobile wallet and ecommerce. Paytm, along with its key backer Alibaba, is expected to pick up a stake in online grocery seller BigBasket. In the meantime, it is closing in on a number of buyouts including online deal startups Nearbuy and Little as well as travel portal Via.com. It bought a majority stake in curated events platform insider.in in July.