Andromeda acquires apnapaisa.com in stock and cash deal

Andromeda, India's largest loan distributor has further consolidated its position by acquiring apnapaisa.com, pioneer in the online loan solutions space in a stock and cash deal. With this, Apnapaisa's technology will be the engine of growth of Andromeda in the coming years.

Andromeda with presence in more than 30 cities across the country with a- 1000-staff strength is the largest loan distributor distributing around Rs 8000 crores per year. Andromeda works with all the leading financial institutions and has a customer base of more than 1 lakh.

Apnapaisa.com, a pioneer in online finance solutions space was promoted by Mr Harsh Roongta, a well-known personal finance professional and the portal has established itself a strong online brand in the loan distribution sector.

Andromeda's acquisition of apnapaisa is in line with the increasing trend of digitization and the tech-edge that apnapaisa brings would drive the growth of Andromeda.

ApnaPaisa was started in 2007 and is a pioneer in establishing a customer centric internet platform to help customers find best possible loans. Till date we have helped more than 2 million customers to find the best possible deal on loans. Our portfolio consists of Home Loan, personal Loan, Business Loan and Loan Against Property.

Commenting on the company's decision to acquire the portal, Mr V Swaminathan, CEO, Andromeda said," with impeccable track record in the loan distribution business over the last 15 years, it is natural for the company to accelerate its process of growth by leveraging apnapaisa's digital strength. We are known for professional, efficient and transparent service standards and moving into online space would further strengthen our well-established track record".

"The acquisition is not just for generating additional business, it is also aimed to benefit from the management strength of apnapaisa to digitize the existing business and also to increase our portfolio in products like credit cards and personal loans which are fast going digital", Mr Naresh Daga, Co-founder and CEO apnapaisa.com said.

Lending is a complex business and requires contextual intervention, particularly in secure products. With the housing sector slated for rapid growth across the country, this acquisition will further consolidate our pre-eminent position, Mr Daga added.

Andromeda has also chalked out an aggressive expansion plan in the coming years to expand its footprint to 100 cities from the current level of 30 cities. Both tier I and tier II cities will be part of this expansion plan as housing finance requirements is expected to witness a sharp increase.

Andromeda services all customers that the major lender offer with an emphasis on individual retail portfolio.

Source : Equity Bulls

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