Sundaram Finance lends its hand to the start-up sector

Sundaram Finance lends its hand to the start-up sector

Posted by M.Venkatesh on September 8th 2017

In a report published in the The Hindu Business Line, leading NBFC Sundaram Finance under its MD Mr.TT Srinivasaraghavan has made an investment announcement that the company had invested in a start-up in June. The company had invested in Delhi-based GyanDhan, an online marketplace for education loans for students aspiring to study abroad, founded by two IIT Delhi alumni, This had generated a buzz in in the start-up ecosystem in the country.But according to Mr Srinivasaraghavan  these are some small, cautious steps taken by the firm and later history shouldn’t judge them poorly saying there was a golden opportunity, you  could have missed .


Investing in the fintech space
 
The company, he says, will only look at ventures in the technology or financial technology space, especially those that have an “adjacency” to the businesses that Sundaram Finance is in and will make small investments in these ventures.
 
Mutual benefit
 
The investment should benefit the retail-focussed Sundaram Finance, in that it could improve efficiencies or reduce the workload of its employees and make them more productive or it could bring in a new technology that will help it grow its existing businesses – that of financing purchase of commercial vehicles, cars, houses, construction equipment, farm equipment, distribution of mutual fund products, general insurance and retail distribution of a range of financial products and services.
Or, the investment should help the start-up validate its product or service through the nearly 600-strong branch network of Sundaram Finance or help achieve proof of concept by testing them out with the hundreds of truck drivers and fleet operators who have been financed by Sundaram Finance.Through its network and clients and, more importantly, its experience, Sundaram Finance offers a ready testing ground for start-ups in the fintech space.
Sundaram Finance plans to invest up to Rs6.5 crore ($1 million) in early-stage ventures and will also co-invest with like-minded venture capital firms and angel investors in start-ups where it can add value.

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