Thursday, December 28, 2023 4:35PM IST (11:05AM GMT
By Victor Senapaty, Co-founder, Propelld
As we approach the end of 2023, it’s a time to look back on a year filled with significant achievements for Propelld and to look forward with excitement to what 2024 has in store for us. This year was marked by a major milestone with our fully owned subsidiary, Edgro, obtaining an NBFC license. This achievement dramatically transformed our operations, leading to reduced costs of funds, increased margins, enhanced underwriting capabilities, and notably faster loan disbursals. Our leadership team underwent a phase of streamlining and stabilization, setting a strong foundation for efficient management and decision-making. In terms of financial performance, Propelld reached a remarkable milestone by disbursing over INR 2,000 Cr. This achievement not only reflects our growing impact but also underscores our commitment to supporting the educational aspirations of Indian students. Our collaboration with over 100 educational institutes for financing higher education has been a cornerstone of our success, enabling us to empower a significant number of students. A key aspect of our growth this year has been achieving an optimal collection track record with higher resolutions. We’ve also made significant strides in building a robust technology infrastructure, which has been instrumental in reducing internal errors. By increasing the tenure of serviced loans, we’ve succeeded in creating a more sustainable and enduring loan book, which is evident in the significant reduction in our Non-Performing Assets (NPAs) (less than 1%) due to improved customer profiling and collection records. Despite these successes, we faced challenges, particularly with the slow growth in the Edtech industry. However, our team navigated these challenges with resilience and adaptability, reinforcing our commitment to our mission and values. Looking ahead to 2024, we are focusing on expanding our reach in international and higher education loans. Streamlining processes around these segments will be a key objective, ensuring efficiency and effectiveness in our operations. We’re also planning to diversify our lead generation sources, with a particular focus on Direct Selling Agents (DSAs), to broaden our customer base and market reach.
Adapting to policy changes has been a crucial part of our journey this year. The introduction of the Digital Lending Guidelines by the Reserve Bank of India (RBI) was a significant development, necessitating a shift in our operational model to align with stronger KYC norms and fair lending practices. Despite the challenges in the unsecured personal loan market, Propelld’s niche focus on education loans positions us favourably in the market, offering loans with a defined purpose and controlled end-use. As we bid farewell to a year of significant growth and learning, we are enthusiastically gearing up for a promising 2024. Our focus remains steadfast on empowering educational dreams, driving innovation in our field, and adhering to the highest standards of responsible lending practices. The future is indeed bright for Propelld, and we are excited to have our partners, customers, and team members join us on this thrilling journey.