HFC - I think it is not a bad move. most likely they will be lending to the same type of customers as they have for 2-wheeler or Micro fin .
I believe that the competition for these customers will be less. Thats why Gruh has been able to grow so well. Whether Arman can grow or not ? only time will tell.
Whether it is HFC or MFI the raw material is same - money. So if one segment is not growing the company will have the option to diverse the funds to the other segment.
However, the expertise required for each segment is different.
Still I feel it is better if a finance company is into 3-4 segments. Thats what I liked about Bajaj Finance.
Being exposed to only 1 segment like auto fin , HFC , MSME etc will lead to subdued growth during the down cycle.
Disc - Invested
| Subscribe To Our Free Newsletter |
