IndiaP2P: FY22-23 Year-end Impact Report

Our founding thesis has been that investments should not only generate returns but also create a positive impact. IndiaP2P's purposeful investment strategy focuses on identifying high-credibility borrowers operating small, growing businesses with an additional focus on women borrowers.  

This focus is driven by opportunity, the intent to remove barriers that women face while running businesses and affect prosperity for all of us.

Opportunity: Women are indeed more credible borrowers with higher credit scores and proven superior repayment discipline and behaviours.

Remove Bias: Surveys and studies show that women are 2x more likely to get rejected for a loan for near identical businesses compared to male counterparts. In addition, many lenders including banks ask women borrowers to get NOCs from male relatives perpetuating patriarchal biases.

Prosperity for All: IndiaP2P investments are productive i.e. lead to real economic value add. By using technology to make the credit value efficient, we are able to create win-win investment products for investors & borrowers.

Enabling small businesses and women is our single most powerful lever toward achieving economic prosperity and social progress. Credit can be a powerful tool for small business owners to progress out of poverty by enabling them to invest in their businesses, diversify their income streams, create jobs, improve their creditworthiness, and become more empowered in their personal and professional lives.

Here are some key statistics and achievements for FY22-23

• % of portfolio towards women borrowers >90%
• Borrower geographies covered: Tamil Nadu, Kerala, Andhra Pradesh, Odisha, Telangana, Nagaland, Madhya Pradesh
• of customised credit products: 24

SDGs Impacted:

Some things we observed:

• Small business borrowers are increasingly becoming tech savvy by adopting digital payments (100% in some cases) and digital marketing (promotional youtube videos, shorts and more)
• Savvy about branding: Business owners are aware that they need to feed their years of business performance credibility into their brand. Women business owners are choosing to become their own brand ambassadors in many cases.
• Uncertainty around access to credit persists: Business owners don't feel confident that they'll be able to access future credit even when their businesses are doing great

And some areas we seek to improve upon in the coming fiscal:

• Increase the number of credit SKUs offered to borrowers to meet increasingly varied business needs. 
• Promote the voices and businesses from amongst our borrower base.
• Design for potential repeat borrowers.

Here are some curated borrower stories:

Vidya, Owner Krishna Stores

Kannannur, Kerala

I started my career in the telecom sector but always wanted to run my own business as I do now. Krishna Stores is a service-oriented grocery store where we understand that locals cannot often make the trip to us, so we need to go to them. Given my telecom experience, I manage many orders over the phone and WhatsApp and keep my customers loyal and happy with bulk purchase discounts.

Being owner of my business I also have the necessary flexibility to raise my two young children, something that I could not have in a job.

Jiva, Owner J P Tiffin Centre

Thiruvarur, Tamil Nadu

I have been running my restaurant for the past 15 years and am proud that it is the most popular eatery in the area. We serve local food and some modern snacks, coffee, cool drinks, etc. Since the past few years, I have noticed that J P Tiffin Centre is also becoming a socializing joint. Young people take pictures while meeting with friends and colleagues and like to enjoy their time here.

With my IndiaP2P loan, I have expanded seating capacity to simultaneously serve more customers who come here to eat and socialize.

I welcome all of you to visit and have a meal with us when you are in Thiruvarur.

Gaisinthui, Owner Clement Enterprises

Teunsang, Nagaland

I run a retail store supplying essential white goods, small appliances, and other daily use items that locals demand. We are based in a remote town on the Myanmar border and most companies don't have nearby warehouses or stockists to make supplies which is why I generate pre-orders and specially contract transport to carry supplies from Guwahati or other stockist towns.

I am glad that IndiaP2P is providing loans to clients here. We barely have any credit providers here which is why the entrepreneurial drive of many dies out.

I am also happy that my success leads to success or returns for the investors who have funded my loan.

Khadija, Owner Safa Packaged Foods

Mannur, Kerala

I have been selling packaged sweet and savory snacks for the past 6 years having purchased specialised equipment that gives my business higher throughput at lower cost.

I also employ local women and that makes me proud as an employment generator.

With my IndiaP2P loan, I am launching a new line of snacks and branding them for the first time. I am investing in modern packaging and have a graphic designer to do my brand and logo. One day I hope Safa branded foods will be enjoyed all over India.