Singapore-based oCap Management Pte. Ltd.on Monday announced that it has acquired a 25 per cent stake in Chennai-based non-banking financial company (NBFC) GoCapital Finance Limited, marking its entry into the country’s financial services space.
oCap, via its wholly-owned subsidiary oCap Asia Pacific Holding Pte. Ltd., has entered into a share subscription agreement with GoCapital, it said in a statement.
GoCapital is short-term loan provider to micro, small and medium enterprises (MSMEs).
Following the recent launch of Merchant Cash Advance (MCA) in Singapore, this strategic partnership is an important step towards providing innovative artificial intelligence (AI) driven financial services for India’s 55 million merchants, the statement added.
Carlos Haeuser, Chief Executive Officer of oCap, said, “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. As we scale our operations in the region, we continue to be the go-to business partner that provides capital responsibly to enable growth and unlock potential for businesses.”
oCap claims to offer fully automated processes on a secure platform, based on blockchain technology, to provide businesses with instant access to liquidity.
Guru Prasad, Head of Credit Risk and COO of GoCapital, added: “We look forward to collaborating with the highly experienced management team of oCap to broaden our product suite, as well as to incorporate AI and Machine Learning into our offering. Moreover, we are excited at the prospect of working closely with oCap to support the rollout of MCA in India and the region.”
Incorporated in 1996, GoCapital is a NBFC that provides short-term loans and is involved in activities auxiliary to financial intermediation, except insurance and pension funding.