Mahindra Finance plans to separate fintech biz, mulls banking licence

Mahindra & Mahindra Financial Services plans to carve out a special business unit (SBU) for its fin-tech vertical which will be run like a “separate independent company,” said MD Ramesh Iyer.

The company will allot Rs 250-Rs 300 crore in capital to this entity and measure the return on capital. To be called Digital Finco, this SBU will focus on small ticket loans particularly in the two wheeler space. Currently, Mahindra Finance does not have a presence in two wheeler financing. Digital Finco will also enter personal and consumer durables financing segments both in urban and rural markets.