Vermillion Finalytics, which runs the online portal LoanXpress, has set itself a loan disbursal target of Rs 100 crore for the current fiscal.

The Mumbai-based company has sanctioned a dozen loans amounting to Rs 32 crore since its launch in November 2015, its Founder Pratapsingh Nathani told. “March is a good time to borrow, and we will be looking at facilitating loans worth Rs 75-80 crore this month,” he said.

The company provides fund raising and advisory services in debt capital market and loan syndication to mid-sized firms.

Vermillion Finalytics is also looking at diluting a 10-15% stake over the next few months.

“We are in talks with investors and are looking at a valuation of $6-8 million,” Nathani said.

The company announced the launch of its Pune operations this week and said that it expected to do business worth Rs 100 crore in the next financial year in the city alone.

Over the next six months, it aims to start operations in India’s eight biggest cities which will act as hubs for the smaller towns around them, with a total of 32 franchises.

A Former Banker, Nathani set up LoanXpress to help Small and Medium Enterprises (SMEs) gain easier access to debt funding. The website has a tool which can calculate the amount of money an SME is eligible to borrow once it enters some basic financial details.

The company has tied up with 25 banks, including both state-run and private lenders, and non-banking finance companies or NBFCs.

Based on the information entered by those seeking a loan, it gets back with a list of products best suited to the needs of the borrowers.

“We consult with SMEs on their needs and how genuine their requirement is. Once we pass on the details to the banks, there is a three-day turnaround time, after which it takes 21-35 days to get the loan sanctioned,” said Nathani.

LoanXpress earns 1.5-2% of the transaction value either from the NBFC or the borrower.

 Source: The Economic Times