Pidilite plans entry in lending business. Thoughts?

[shraddha]

So it seems everyone wants to get into lending.

Pidilite Industries which owns popular brands like Fevicol, Dr. Fixit, Fevikwik, M-seal, Hobby Ideas and more is planning to get into lending business.

It is acquiring an NBFC Pargro to facilitate credit to players in their domain in the form of small value retail loans. Pidilite Industries is gearing up to establish ownership of Pargro by forming a new company exclusively under its wing. This will be accomplished through the execution of a Share Purchase Agreement (SPA), expected to be finalized by March 31, 2024. The acquisition of Pargro will be sealed at a cost not exceeding 10 crores Rupees, aligning with the current value of Pargro’s investments as of October 31, 2023. It plans to invest Rs. 100 Crores over the next two years in form of equity and debt.

What do you think of this?

[t7support]

@shraddha

So it seems everyone wants to get into lending.

Very correct. Relative to the population however only a small percentage is credit worthy.

@shraddha

to facilitate credit to players in their domain in the form of small value retail loans.

However this looks like a good idea to me. There could be significant growth in this segment as we as a nation uplift more people from poverty and push more and more people in to the middle class segment over the coming decades.