Paytm partners with Shriram Finance for loan distribution business; stock zooms ~2%

30 Jun 2023 , 03:12 PM

One97 Communications Limited (OCL), parent company of Paytm brand, announced that it has entered into a partnership with NBFC Shriram Finance Limited on Friday to provide financial services, including loan products, to its users. 

Shriram Finance’s products will be digitally available on Paytm’s platform as part of this partnership, helping to expand access to credit and drive financial inclusion in the country.

‘This strategic alliance combines Paytm’s broad reach and technological infrastructure with Shriram Finance’s lending expertise as India’s largest retail NBFC. This partnership will integrate Shriram Finance’s wide geographical presence across the country, particularly rural areas, and will be powered by Paytm’s fintech leadership as a loan service provider (LSP) focused on compliance and loan quality,’ said the company in an exchange filing.

To begin, merchants on the Paytm network will be eligible for Shriram Finance loans, which will then be extended to consumers.

Shriram Finance manages assets worth Rs 1,85,683 Crore, operates 2,922 branches, and has a workforce of 64,052 employees.

At around 3.06 PM, Paytm’s counter was trading 2.37% higher at Rs 869.70, against the previous close of Rs 849.60 on NSE. The counter touched an intraday high and low of Rs 869.75 and Rs 851.80, respectively.

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