PC: ANI News
With this acquisition, DSP Group makes a significant development in the fintech space by acquiring Volt Money, a mutual fund based platform that provides instant secured loans. This development, as reported by Entrackr, is a strategic move towards expanding DSP’s financial services and significantly boosting the firm’s fitness in the increasingly obvious electronic lending market.
Details of the Acquisition
The deal was finalized last month following discussions between DSP and Volt Money, which had been ongoing over a few months by that time. With the acquisition likely to present a smoother integrated services/equity expertise, key team members from Volt Money will join DSP. In Volt Money, the lenders as well as some distribution partners lend up to ₹25,000 to ₹1 crore with interest rates ranging from 9% to 35%. Flexible repayment options are offered by the platform, which is also a great choice for borrowers.
Background of Volt Money
Volt Money was created by Lalit Bihani, Bharat Lamba, and Ankit Agarwal, who raised $1.5 million in a seed round from Titan Capital and All In Capital. Very much included in the funding round are some notable investors such as Kunal Shah of Cred and Aditi Kothari of DSP Adiko Holdings. However, while it began with some initial success, sources have indicated that this meant that Volt Money struggled to secure follow-on funding, which in turn affected investor returns. But since it happened, the founders see it as a reasonable outcome.
Competitive Landscape
Competition includes other loans-against-mutual funds players such as Quicklends and DhanLap. Interestingly, last year, BharatPe, the fintech unicorn also entered this segment with Volt Money through a partnership.
The fact that DSP is acquiring this fintech is indicative of the consolidation in the fintech industry, as well as financial institutions are looking to strengthen their digital capabilities by buying innovative startups. Volt Money’s platform integration with DSP’s resources is expected to form a robust offering for customers looking for instant loans on their mutual fund investments.
Future Prospects
Instability and demand for flexibility in lending solutions are growing, so fintech is shifting to favor instant lending solutions. With DSP’s acquisition of Volt Money, the company is ready to prowl this trend as it offers a holistic suite of financial products for today’s consumers. DSP focused on utilizing technology to simplify the process of lending, hence to position itself better in the market and improve customer satisfaction.
A claim by Entrackr states that the purchase of Volt Money by DSP Group is a strategic investment in the burgeoning fintech sector. This also helps DSP to offer its service offerings beyond the breadth of services, as more and more people become tech savvies.
