Moneyclub, a fintech startup based in Noida, is tackling the issue of limited access to credit for lower income groups by providing on-demand liquidity through group savings. The platform allows users to pool their money on a monthly basis, akin to rotating savings and credit associations (ROSCAs), providing them with an alternative borrowing method. Moneyclub also has a separate platform called Vrddi, which focuses on the financial well-being of employees. The company currently has 700,000 users and registers over 125,000 transactions monthly, with approximately 105 pools formed so far.
The idea for Moneyclub arose when founder Manuraj Jain’s driver asked him for advances to contribute to his local ROSCA. This piqued Jain’s interest, leading him to believe that a technological approach to ROSCAs could be a game changer. Moneyclub has combined the mechanics of ROSCAs with cutting-edge AI technology to create a financial product for this market segment. The platform follows a gamified user journey that cultivates a habit-forming experience, with data generated from the high-frequency, low-value transactions feeding into Moneyclub’s underwriting model.
Moneyclub’s business model is governed by the RBI P2P guidelines, with every transaction on the platform facilitated by a third-party NBFC P2P platform. The winner of each round of the ROSCA signs a borrower’s agreement with the partnered NBFC P2P platform, while other club members sign an investor’s agreement. The pooled amount is then transferred to the winner through escrow accounts. In the future, Moneyclub plans to add new partners, invest in technological advancements such as smoother onboarding and predictive engines, and expand its geographical reach to the southern states of India.
In summary, Moneyclub is addressing the lack of access to credit for lower income groups by offering an on-demand liquidity platform based on group savings. The company has successfully integrated ROSCAs with AI technology, resulting in a habit-forming user experience and effective underwriting model. Moneyclub operates within the regulatory framework of the RBI P2P guidelines and plans to enhance its platform by partnering with new organizations, advancing its technological capabilities, and expanding its geographical presence.
