• Airtel to expand beyond telecom


• A plan to reach out to unbanked customers


• 20,000 crore to be invested in NBFCs

Bharti Airtel Telecom: Telecom company Bharti Airtel is now gearing up to take a big step into digital finance. The company has made a big announcement to infuse up to Rs 20,000 crore into its NBFC unit. It is considered to be the company’s biggest strategic investment outside the telecom business. Bharti Airtel announced on February 23 that it will invest Rs 20,000 crore in its subsidiary, Airtel Money Limited, over the next few years. Airtel will contribute 70% of this amount, while the remaining 30% will come from the promoter group, Bharti Enterprises Limited.

The announcement comes after Bharti Airtel recently received an NBFC license from the Reserve Bank, giving Airtel formal approval to expand its digital lending business in a big way. 9,000 crore loans already disbursed, now gearing up for massive lending. The company says its Lending Service Provider (LSP) platform has disbursed more than Rs 9,000 crore in loans in the last two years.

A team of over 500 data scientists and advanced analytics systems have built robust risk management and underwriting systems. Airtel Executive Vice President Gopal Vitthal said the company has built a strong foundation in digital credit through technology, data and customer trust. NBFC expansion will now further strengthen this foundation. Shares of Airtel will increase after getting NBFC license.

India’s formal credit-to-GDP ratio is around 53%, which clearly indicates significant potential in the credit market. Airtel wants to use its vast customer base and digital network to reach customers who are not fully connected to banking services. The company plans to integrate loan disbursal through NBFCs with its existing digital platform, but the two will remain operationally separate. With strong telecom cash flow and technological capabilities, Airtel is now poised to become a big name in digital finance as well.