Undiscovered, Unknown & Undisputed Winner of the FRESH NEW MEGA TREND "BNPL (Buy now, Pay later) Schemes" which will grow 15x by FY26 & will surpass the credit card user base too.
Apollo Finvest (India) Ltd - "Un-disputed Winner of tomorrow"
Imp Note: Apollo Finvest stock idea was published in Jan 2022 to all our PAID subscribers of “SME Handpicked Future Movers” Plan where we identify 12 best-in-class SME Stock (mostly NSE Emerge Platform listed or BSE Start-Up Platform listed stocks).
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This is a very low volume counter (where the number of buyers and sellers are just 500-1000) with average daily turnover of ~ 10-15 Lacs. In spite of being a 250+ Cr Market Cap company volume is low because there is no market maker in this little known counter.
Low free float is also because high promoter holdings (70.7%) and strong hands holding this stock under retailer category leaving no room for small retailer to buy without inflating price.
Dependency on two key promoters Mikhil Innani (Very Smart & Visionary Guy) & his wife Diksha Nangia is a BIG risk.
Such stocks should not contribute more than 2% of your overall portfolio. Also one should buy ONLY if you are planning to hold it for 2-3 years!
✅ Apollo Finvest (India) Ltd (BSE: 512437) ✅
🏆🏆🏆 Market Cap ~ 250 Cr | FinTech Company with an NBFC License | Serving Ambitions of 35+ Fintech | 730% Growth in Amount Disbursed in Q2FY22 (YoY) | High LTV | Biggest Beneficiary of BNPL lending through Platforms (e.g. Amazon, Zomato, Paytm, Ola, LazyPay, ZestMoney etc.) | Trusted, Efficient, Committed & Visionary Management.
✅ Few Salient Features... ✅
👉 This is a story of an NBFC which is aiming to become the AWS (Amazon Web Services - is the world's most comprehensive and broadly adopted cloud platform, offering over 200 fully featured services from data centers globally) of the leading space.
👉 Mr. Mikhil Innani (CEO, Apollo Finvest | ex Hotstar, PharmEasy | Carnegie Mellon Alumni ) is running the show along with his wife Diksha Nangia (COO & Director, Apollo Finvest | Worked at HDFC, ING Life Insurance | NMIMS Alumni, CFA Charterholder) and is transforming the company into a tech company having an NBFC license.
👉 Earlier for a platform to partner with a player and to start offering credit to its customers used to take 3+ months. Apollo Finvest makes this possible in 48 Hrs.
👉 Apollo Finvest shifted the burden of due diligence on their partner (platforms) which to some extent solves the asymmetric information problem between the lender (Banks & NBFC) and Platforms.
👉 Superior APIs to help their partners integrate and automate to some extent the cumbersome process of loan approval.
👉 Impeccable Loan management system (LMS) named Sonic - Having low attrition rate and higher switching costs.
👉 The current credit approval rate (measured based on credit history of customers) for small-ticket loans by platform is less than 10% which is making the company selling the product apprehensive as despite their data (here data means transaction history of customer on the platform) showing the customer to be creditworthy loan gets disapproved. This is not the case with Apollo Finvest as the decision of approval is on the platform.
👉 This company is like a start-up getting the best of both worlds => High growth & latest technology + Traction & Compliance of a public company.
👉 Exponential growth is visible in its financials too. For a company operating in the B2B segment, Customer Lifetime Value (LTV) i.e., an estimate of the average revenue that a customer will generate throughout their lifespan as a customer, is paramount here. Apollo Finvest is building an unfair advantage by building futuristic products which will have high customer LTV, low attrition rate, and even higher switching cost. Apollo Finvest is not only available at reasonable valuation but also holds immense potential to become a large institution. It's a clear case of "Heads I win (Upside is many fold in 10-12 years), Tails I don’t lose much (Little downside)". 👍👍👍
🏆🏆🏆 We expect in the coming times most credit-worthy customers will be financed by platforms (Amazon, Zomato, Paytm, Ola, LazyPay, ZestMoney etc) as they have the most amount of data to judge the creditworthiness of the credit seeker. Whereas, the ones which might not be creditworthy will look for other traditional borrowing options – Pushing the cost of lending for the banks. This will increase the total addressable market (TAM) of Apollo Finvest.
✅ NEW MEGA TREND "BNPL (Buy now, Pay later) schemes" ✅
👉 Welcome to the world of Buy Now, Pay Later (BNPL) schemes, which are burgeoning by the day and have captured the imagination of the aspirational Indian middle class.
👉 These BNPL schemes—offered by several platforms such as Paytm, LazyPay, ZestMoney and even banks—have fueled consumption by making it extremely easy for consumers to make purchases.
👉 The borrower gets the option of an instant, short-term loan with a deferred repayment tenure, including the facility of equated monthly installments after the end of an interest-free period.
👉 The BNPL offerings are attractive since they are small-ticket loans, often for daily consumption purposes. While they are like credit cards, they don’t have the hassles of an application process, card-swiping infrastructure, and purchase and cash withdrawal limits.
👉 Put simply, they could be a consumer’s dream. No wonder, then, that the BNPL market is set to surge to a hefty $45-50 billion, or Rs 3.37-3.75 lakh crore, by 2026, from just $3-3.5 billion (Rs 22,500-26,250 crore) now, and become almost as big as the traditional credit markets like personal loans and credit cards.
Very nice article