InvestorQ : Can you tell me about the tie-up between IIFL Finance and Open Financial Technologies Asia?
Riya Dwivedi made post

Can you tell me about the tie-up between IIFL Finance and Open Financial Technologies Asia?

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shrinidhi Rajan answered.
2 weeks ago
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IIFL Finance Ltd, the finance and lending arm of IIFL group (formerly Indiainfoline) has just announced a joint venture with Open Financial Technologies Asia. The idea is to jointly create Asia’s largest MSME (micro, small and medium enterprises). The Neobank will be largely digitally driven and the business metrics of the joint venture will be largely focused on the neo-banking platform. It is expects to cater to the banking and credit needs of MSMEs, which actually constitute the backbone of India’s jobs and exports.

The coming together of IIFL Finance and Open Financial Technologies Asia will be synergistic in more ways than one. On the one hand, IIFL Finance will have a 51% stake in the joint venture while Open Financial Technologies Asia will have 49% in the venture. Initial capital of the JV will be Rs.120 crore, which will be brought in in the holding ratio. While Open Financial Technologies Asia brings in the technology, IIFL brings in its customer base. The JV will be profitable from the first year itself with $2 billion lending book by end of year 2.
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