Latest Wise Capital News
Oct 7, 2020
The company that disburses two-wheeler loans plans to use these funds to grow its dealer network Credit Wise Capital competes with players such as WheelsEMI, AutoMony, OTO Capital and Berar Finance Ltd Credit Wise Capital (CWC), a digital NBFC has raised $6 Mn in seed funding. The round was led by Mayank Shah, chairman of the real estate-focussed MJ Shah Group. The participants included serial investor Ajay Goel, Anuj Golecha (founder of Venture Catalysts), Gaurav Gandhi (director at EssGee group), Anup Agarwal (director of Shanti Group) and Gaurav Singhvi, a statement said. The company that disburses two-wheeler loans plans to use these funds to grow its dealer network, increase geographical expansion, improve collection technology and underwriting models. CWC founded by Hirak Joshi and Aalesh Avlani, aims to disrupt the two-wheeler lending ecosystem. . “Many lenders progressed fast thinking that tech would handle risk on its own. They forgot that technology is as good as the hands that are put into use. Tech is an enabler and not a panacea for all the ailments. Technology cannot convert a delinquent customer into a good one,” said Hirak Joshi, cofounder of Credit Wise Capital. The company has onboarded debt partners like AU Small Finance Bank, Hinduja Leyland Finance and Vivriti Capital. “Tech is an enabler and not a panacea for all the ailments. Technology cannot convert a delinquent customer into a good one,” Hirak added. CWC competes with players such as WheelsEMI, AutoMony, OTO Capital and Berar Finance Ltd. The Corona Crash Of 2020 Registered digital NBFC’s which numbered about 10,000 in March have taken a body blow due to Covid-19. Their numbers are now down substantially, experts attribute it to their inability to defer the crisis, as their quality of lending was not as prudent as it should have been. While April and May were the dark months when digital lending was at a standstill, the light at the end of this tunnel is not close yet. Only a few lending companies will be able to survive the journey. Covid-19 has forced NBFCs in the B2B segment to adopt e-sign, e-mandate and video KYC which were conducted physically earlier.