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CapitaWorld, an Ahmedabad-based company that has rolled out a first-of-its-kind fund-raising application based on Artificial Intelligence in Gujarat, now plans to expand its offering phase-wise in other states soon.
The company had won the second prize in All-India Banking Technology Contest organised by the Institute for Development and Research in Banking Technology (IDRBT), established by RBI, recently. It also bagged the second prize in the banking technology contest, according to a statement here.
Over the last 2 years, CapitaWorld built a unified platform that has simplified and democratised the process of access to loans for retail and corporate entities from banks and NBFCs.
“Earlier, any person requiring funds had to approach distinct fund providers like banks and NBFCs to meet their requirement. Then they had to compare their deals, fill up various forms for each of them, submit numerous documents and then even get rejected by some. CapitaWorld gets the whole process done using one simple form. We are now ready to take the benefits of this application to other states,” said Jinand Shah, Founder Director, CapitaWorld.
CapitaWorld implements a combination of digital algorithms and interface along with physical support to ensure deeper and successful penetration in the financial markets.
Most of the MSMEs’ formal lending happens as collateral-backed lending. Yet, the mortgage penetration as a percentage of nominal GDP in India is as low as 9 per cent, while in the United Kingdom it is as high as 81 per cent, followed by the USA (69 per cent), China (17 per cent) and South Korea (36 per cent).Therefore there is a long way ahead for the Indian organised debt market, he said.
More than 4.50 crore MSMEs contribute to over 35 per cent of India’s GDP. They account for around 37 per cent of the manufacturing output of the country and have registered a CAGR of more than 7 per cent.
The application banks on professionals who use technology to raise funds for their clients and connects. They, in turn, act as a force-multiplier to increase the reach of CapitaWorld to Tier 2 and Tier 3 cities.
He said CapitaWorld provides affordable, scalable solutions that provide an emerging financial technology-led start-up ecosystem to bring the unbanked people in the unorganised market into the banking net through timely funding.
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