Singapore-based SME lender oCap seeks India expansion

In line with its regional expansion strategy, oCap is entering the Indian market through a strategic partnership with GoCapital Finance

SINGAPORE-HEADQUARTERED oCap Management has struck up a strategic partnership with an India-based short-term loans provider in a bid to enter the Indian market.

This will be done by a unit of oCap - which provides working capital loans to small and medium-sized enterprises (SMEs) - taking a 25 per cent stake in Chennai-based GoCapital Finance Limited. 

oCap said the investment serves as a launch pad for it to roll out its artificial intelligence driven lending products in one of the world's largest SME markets.

According to the World Bank Group's investment arm, the International Finance Corporation, the financing gap for SMEs in India is about US$230 billion and represents 68 per cent of the total gap in South Asia. 

“In line with our overseas expansion plans, we are pleased to have identified an ideal platform and partner in GoCapital, which complements oCap’s value proposition in addressing the needs of a market largely underserved by traditional lending systems," said Carlos Haeuser, oCap's chief executive. 

Kanu Krishna Warriar, director of GoCapital, said: "With an alignment in core values to be client-oriented and the synergies between our companies, we are confident of the skillsets and expertise oCap brings to help us capture greater market share.”