Only seven NBFCs in India were given factoring licenses and Pincap is one of them. PinCap’s business and operational models are based on AI-ML and advanced analytics that seamlessly facilitate the design, launch, implementation, and execution of FinTech with swift structured & transparent processes. Pinnacle Capital Solutions Private Limited (PinCap) is a Gurgaon-based Non-Banking Financial Company (NBFC) and one of the seven NBFCs that are into factoring business in India. With the availability of data and advanced AI, PinCap has emerged as a technology-led data-driven company that has enabled various industry verticals to leverage their expertise to scale new-age financial solutions. In short, the tailor-made financing and month-on-month growth are what sets PinCap to stand out from its peers giving massive opportunities to empower digital lending in India.
The Man Who Built it from the Scratch
Praveen Sinha, Founder of PinCap, is known for venturing into space where technology can disrupt the market by changing the way business is done. For instance, he is also the co-founder and ex-managing director of one of India’s first fashion e-commerce Jabong.com. He has experience in creating significant and innovative solutions by leveraging his understanding of not only technology but also softer aspects, network, and cross integration of digital stack and industry vertical.
Praveen has leveraged his rich experience of strategic advisory, investments, business building, and execution, by making Pincap a tech-ready NBFC in India with the remarkable talents in its team.
Innovating Its Way to Success
On July 20th, 2021, the Indian Parliament passed legislation to liberalize NBFCs’ participation in the factoring business. With this amendment, PinCap is very well placed to enable investors & innovative fintech to capture the market. While commenting on the new development, Praveen Sinha, says “India’s adoption rate for fintech products stands at 59%, which is the second-highest pace worldwide & this gives not only smart Indian companies and startups but also global fintech companies to enter into this space. I am glad that the Parliament has done this, as international trade continues to increase, the opportunities for the factoring industry are growing at a similar pace.”
PinCap provides an environment for innovators and testers to execute their innovative financial products in the real market within a well regulatory compliant framework. This acts as a great extension to the startups testing their products in the fintech sandbox.
Remarkable Achievements Made by the Company
Since PinCap has been in the financial market for over decades now, it has figured out some of the crucial areas where it can leverage its expertise with the help of technology. PinCap has enabled FinTech to plug and play their solutions to leverage over their core competencies in no time. PinCap combines the best-in-class technology experience and data analytics capabilities at its disposal to offer high-end services to the seeding FinTechs’ in India. Working with PinCap, businesses will receive competitive commercials, ready-to-live collaboration models with cost-intensive processes, co-lending partnership &revenue model design.
Extensive Use of Disruptive Technology is Growing
Amit Pandey, CEO of PinCap, states “India’s supply chain has a huge appetite to grow which is restricted by the availability of credit. We at Pincap are trying to build solutions using technology (Alternative Data, AI, Fraud Detection, Invoice Validation, etc.) that can be customized as per the client’s requirement. Our solution varies from channel finance, distributor to dealer finance, invoice discounting. I am surprised to continuously get so many inquiries from my network for supply chain finance”
Globally, the Indian Fintech ecosystem is 3rd largest and has attracted the most private capital in India after e-commerce over the past 5 years. Indian FinTech companies have raised approximately USD 10 Bn & FinTech sector valuation is expected to reach USD 150-160 Bn. The growth of individuals and several small and medium enterprises in India is hindered because banks and organized finance companies do not find it feasible to fund them. The company has many innovative startups with amazing and capable founders, focused on the need of underserved & underfunded segments in India who don’t have the financial records or data as per the requirement of conventional financing systems.
Contribution to the Fintech Industry
Commenting on how PinCap is helping other FinTech to scale through partnerships, Avdhesh Tripathi (Director), says that the company is building synergies with such founders by combining our lending strengths and compliant channels with their Fintech solutions while being regulatory compliant. It not only guides compliance but also contributes capital based on its track record. Adding to that Praveen (Founder) informs that the company is aggressively looking for such FinTech partnerships. It understands that the digital partners have immense geographical reach with the best available technical algorithms.
Insights into the Future
With the introduction of the joint contribution model, PinCap has opened the doors for the partners to achieve priority sector targets by leveraging the reach & efficiency of its tech &digital platforms. Further, being an RBI registered NBFC, the company navigates its partners through the proper regulatory channels to help them reach their business goals. The combination of PinCapand smart tech is a win-win combination, and both stand uniquely in their own space. Several FinTech’s have partnered with PinCap and the outcomes were outstanding.