A 3-year-old Indian digital lending startup Lentra offering loans as a service was valued at $400 million in a recent funding round. It has more than 50 clients and has processed over 13 billion transactions and $21 billion worth of loans since its launch.
I wonder why Intellect despite its Digital Lending product being rated highly by analysts and having top ranks in sales tables is struggling to attract remotely similar valuations.
Is it because?
a) Its products/platforms are not as good as the ones provided by focused Fintech startups in various verticals.
b) Intellect is trying to do too many things at once. The products and platforms do not get the investment and management attention required to make them successful against well-funded startups in each product segment. e.g. This quarter they launched 3 new platforms viz. Magic Submission, Magic Invoice, and iESG. I don’t see an obvious competitive advantage IDA possesses in the invoice processing space and ESG.
c) The market seems to like focused startup companies but the market is wrong. Platforms and products need investment and time to mature. IDA revenues, margins, and profits will increase exponentially in the next few quarters/years.
On a lighter note, I wish IDA followed its own laws of design thinking in capital allocation
- Less is More
- ‘Last 2% is 200%’
Meet The Disruptors: Arun Jain Of Intellect Design On The Five Things You Need To Shake Up Your Industry | by Fotis Georgiadis | Authority Magazine | Medium
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