oCap Management enters in Indian market

In line with its regional expansion strategy, oCap enters into the Indian market through a strategic partnership with GoCapital Finance Pvt Ltd, a Chennai-based NBFC.

oCap Management Pte. Ltd. (“oCap”), the technology-driven provider of financing solutions for businesses, today announced that subject to regulatory approvals, has entered into a share subscription agreement with GoCapital Finance Limited (“Go Capital”), a Chennai-based Non-Banking Financial Company (“NBFC”) and short-term loan provider to micro, small and medium enterprises (“MSMEs”), via its wholly-owned subsidiary oCap Asia Pacific Holding Pte. Ltd. for an investment stake of 25%.

oCap Management has a 25% stake in GoCapital underpins the strategic partnership with the local short-term loan provider in India. According to the company, the investment will serve as a launchpad for the rollout of innovative FinTech lending products in one of the world's largest MSME markets. In a recent report, the International Finance Corporation has estimated that the financing gap for MSMEs in India is approximately US$230 billion, representing 68% of the total gap in South Asia. 

Following the recent launch of Merchant Cash Advance (“MCA”) in Singapore, this strategic partnership marks one of Singapore's leading FinTech companies’ entry into India, one of the world's largest MSME markets, and is an important step towards providing innovative artificial intelligence (“AI”) driven financial services for India's 55 million merchants.

Unlike traditional lending products in the market, oCap’s MCA offers merchants a fast, integrated and affordable short-term financing solution, allowing them to achieve their business goals effectively. Targeting MSMEs with electronic payment acceptance, immediate cash can be provided for a share of the merchant's future receivables. Carlos Haeuser, Chief Executive Officer of oCap, commented: “In line with our overseas expansion plans, we are pleased to have identified an ideal platform and partner in 'Go capital', which complements oCap’s value proposition in addressing the needs of a market largely underserved by traditional lending systems3. As we scale our operations in the region, we continue to be the go-to business partner that provides capital responsibly to enable growth and unlock potential for businesses.”

Kanu Krishna Warriar, Director of GoCapital, remarked: “The investment brings on board a strategic partner that value-add our present offerings. With alignment in core value to be client-oriented and the synergies between our companies, we are confident of the skillsets and expertise oCap brings to help us capture greater market share.”

Guru Prasad, Head of Credit Risk and Chief Operating Officer of GoCapital, added: “We look forward to collaborating with the highly experienced management team of oCap to broaden our product suite, as well as to incorporate AI and Machine Learning into our offering. Moreover, we are excited at the prospect of working closely with oCap to support the rollout of MCA in India and the region.”

(With inputs from oCap Management)