Exciting news for the startups!
Ratan Tata, Vijay Kelkar, and Nandan Nilekani are investing in microfinance firm called Avanti Capital. They are making an investment from their respective philanthropic capital in this venture. The business tycoons have applied to the RBI for registration and hopefully Avanti capital will start its operations before the end of the financial year.
Read further to know more about this microfinance company.
Ratan Tata, chairman emeritus of Tata Sons, Vijay Kelkar, chairman of the NIPFP and Nandan Nilekani, co-founder of Infosys Ltd will start this MFI.
According to Tata Trusts, "Avanti Finance will be a technology-enabled financial inclusion vehicle that will focus on delivering affordable and timely credit to under-served and un-served segments in India."
The profit earnings from this MFI will be reinvested in philanthropic causes.
Tata invested his personal wealth in several renowned firms such as Snapdeal, Urban Ladder, Ola cabs and Zivame.
The major aim of Avanti Finance would be to make finance available at low costs to the poor socio-economic class of the Indian population.
According to Tata Trusts, "The aim is to leverage on the social sector presence of Tata Trusts and other like-minded partners and the rapidly evolving India Stack (Jan Dhan-Aadhar-Mobile), UPI (unified payments interface) and payments bank ecosystem. Avanti would use this ecosystem and will innovate on product design in consonance with the indigenous needs, to deliver seamlessly for the end consumer".
With the use of technology, the cost of operations would be reduced and the end beneficiaries would be able to receive the loan at a low price.
According to Tata Trusts, "The promoters strongly believe that the institutional inequalities and information asymmetries are depriving the target customer segment of access to affordable credit. The target customer segment over the last few years has displayed very low delinquency rates compared to any other customer segment, but still is charged the highest rate of interest."
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