MMFSL Quick Pay | Mahindra & Mahindra Financial Services Limited | Praphul Sandhu
Looking at the finances of the Mahindra Group, which is considered India’s most established automobile firm, it becomes clear that there are plenty of opportunities available for a consumer company in India. In light of the following reasons, we decided to launch a fast-growing financial services company with the sole focus of serving individuals in India. Let’s look at these reasons in detail:
1. Acquisition of 70,000 e-mobility vehicles in the year 2019/2020
A quick drive around the Mahindra group’s outlets (patio restaurants, showrooms, etc) reveals a fleet of 30 e-cars and 100 electric coaches (to be converted in the near future). And, you can imagine that the majority of these e-vehicles are in the red. All these cars and coaches came from a single dealership in Jaipur, which has the capacity to manufacture all the cars from a single building. I have a feeling, this dealership is playing a significant role in shaping the future of e-mobility in India.
2. Automobile sales of Mahindra are expected to go up from around 50% growth to 70% growth per annum
The worst hit by the COVID-19 pandemic, automotive sales in India (products of almost all car companies in India) fell by around 40% in the first half of 2020 compared to the same period in 2019. This is due to the effect of a technical lockdown coupled with stricter safety protocols as a part of the pandemic. As a result, India sold 12,581,997 vehicles in 2020, a 22% decrease when compared to 2019 (Figure 1). The percentage of automotive firms like Mahindra stood at around 10%. Expectations are now that the country will see a 70% growth in automobile sales annually (Figure 2).
3. Banking industry in India is poised to undergo a massive transformation as digital technology enables digital services
India has a very low penetration of banking services in comparison to the developed countries. It only has about 30.6 million bank branches in 2019. These branches have the ability to distribute cash, loans, insurance, and investment products, or rather a standard banking operation that puts them outside the reach of mainstream consumers. In this context, customers are being subjected to an archaic and inconvenient experience due to the lack of access to the financial sector. As digital technology enables the digitization of services, India will witness a massive transformation in the banking industry. This is reflected in numerous research reports which predict that India could increase its active banking bank accounts from 25 to 40 to 50% over the next 2–5 years.
4. New era of fintech in India provides a massive opportunity for businesses to cater to digitally engaged consumers
Mahindra Financial Services’ innovative products like mdfsl as-cash and mdfsl home lend are already putting the frumpy and archaic paper-based finance products in disarray. These products and services are already gaining traction, and mdfsl is expected to be one of the most popular financial products in India in the next 6–10 years. Besides the new initiatives, MMFSL is working with one of India’s largest car manufacturers to provide the best car finance product in India.
Summary
A healthy market, positive industry trends, and widespread customer acquisition are the principal drivers of which drive my decision to take the plunge into India. At MMFSL, we are taking a proactive role to assist India’s “digital” consumers by offering the best and most convenient financial services in the country. As the financial industry in India matures, innovative products like instant pay, home loans, and online transactions will play a significant role in helping consumers remain financially stable.
—, Praveen Gambre, Chief Executive Officer of MMFSL
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