IEG – Investment Banking Group has acted as exclusive financial advisor to eKosh Finance on its acquisition of IndiaMoneyMart
The Background At a total of 63 millions MSME’s, India has witnessed an increase of 18.49 per cent in the number of MSME’s registered from the 2.1 million in FY19 to 2.5 million units in FY 20. The Indian MSME sector is dominated by micro-enterprises— 99.4 per cent of the total 63 million are micro-enterprises. These, however, have poor accessibility to capital, making financial access key for growth and sustainability. The unequal income distribution in the country, further increases the need for tech enabled services that have the potential to reach the corners of the country to aid in growth. Fintech Network Platforms like that of eKosh have the capability to resolve this problem through services like loans, payments, wealth, and advisory delivered at doorstep through a tech platform.
The Deal eKosh Finance, has acquired a 10% stake in India Money Mart, a peer to peer lending platform with further acquisition of a 100% stake, post regulatory approvals. IEG – Investment Banking Group has acted as exclusive advisor to eKosh Finance on its acquisition of India Money Mart.
Amit Saxena, CEO of eKosh Finance, said “We are excited to partner with IMM Peer to Peer Lending platform to enhance product offerings to the underserved micro businesses “.
Mihir Kapoor, Managing Partner – IEG India, states about the transaction: “The acquisition is aimed to play at the synergies between the two companies. It creates a revolution in the Indian financial services ecosystem by utilizing a wide array of offerings, like the Loan against Gold product, which have a huge potential in the Indian market.”
The Partners eKosh Finance is a tech & doorstep delivery network platform to transform the micro businesses in about 5000 clusters across India. eKosh offer loans, payments, wealth & advisory services with Loan against Gold as the start product with a payment’s platform & partnerships with large banks. IndiaMoneyMart is an online marketplace that brings together Borrowers and Lenders to enable transactions between them. Individual Borrowers get loans from individual Lenders in this internet marketplace. It is a robust technology driven marketplace – lending platform enabling financial empowerment and control over investment decisions to common people. The app is useful for people seeking alternative sources of funding to meet emergency requirements.
The Perspective With this acquisition, eKosh aims to access retail lenders and borrowers to enhance the product offerings to micro businesses under the network platform proposition. eKosh plans to raise USD 70mn over the next 5 years to expand into new products and enhance its tech platform.