Digamber Finance & Finflux - Our Journey Together

In a small village called Ramganj, Draupadi Bai and her family were struggling to make enough money. Draupadi wanted to help boost the family income by setting up a vegetable selling business.

But the initial set-up cost was around Rs.40K. The money she did not have as savings. Thanks to a loan she got for that amount, she built not just her business but also started making profits.

Repaying the first loan, she took another one for Rs. 50K, this time feeling more confident about her ability to expand her business and make a better life for her family.

Each town, each village across our country, has hundreds of such unwritten stories. Waiting for that first nod of belief. That first loan.

Digambar Finance Growth:

Twenty-four years back, Digambar Finance was set up with a simple dream - To help write these much-needed cheques that would start the journey of millions of such unwritten stories. Starting off with two-wheeler financing, the team expanded to Microfinance in 2009. Since 2010, post their Microfinance bet, the firm has seen strong growth; today, reaching over 200,000 borrowers across 148 branches.

And despite this rapid growth, the company has ensured strong repayment rates. As of FY 2020, the repayment rate is 99.5%. And that has been consistent over the years despite market fluctuations.

Partnering with Finflux:

Finflux has been a partner for Digambar for over 10 years now. The growth of the company in terms of their disbursement, their AUM, their lenders, their borrowers, and their branches have been built on the back of the robust technology platform that Finflux has enabled for the company, at every step, matching the processes, the automation, and the workflows to the required growth levels.

Over the last ten years, along with the borrower and branch growth, Digambar’s disbursement has increased from Rs.12.94 crores to Rs.440.78 crores. The number of lenders has grown from just 1 lender to 24 lenders. Today, looking back at a brilliant 10-year partnership across the two companies, here are some of the key milestones and learnings.

Key Learnings from the journey:

Given the last-mile connectivity that Digambar needs to provide for its customers, the Finflux team ensured complete digitization of the processes, much before “cashless” became a key industry requirement.

This helped the company stem the demonization impact, with UPI based cashless collections

Given the changing nature of consumers, Finflux built a mobile solution for the company

With an expanding portfolio, Finflux is now helping the Digamber team analyze data to find patterns in risks and costs, preventing potential fraud and reducing operation expense (OPEX).

A central application process ensures loan officers cannot pull credit bureau data, reducing potential chances of data misuse.