Unlocking Liquidity: How Yenmo Empowers Indian Investors

Yenmo, a Bengaluru-based startup, has emerged as a game-changer in the realm of secured consumer lending in India. The journey began with a critical insight into the financial behavior of Indian investors. Ashutosh Purohit, while working at one of India's leading fintech companies, uncovered a startling statistic: over 30% of personal loan borrowers had active investments but were still paying exorbitant interest rates of over 18%. This revelation pointed to a significant gap in the market – a lack of awareness and availability of loans against investments.

The conventional options available to investors in need of liquidity were far from ideal. They could either liquidate their investments, thereby missing out on potential compounding growth and incurring substantial capital gains taxes, or take out personal loans at high-interest rates. Recognizing this dilemma, Purohit saw an opportunity to create a financial solution that would allow investors to leverage their existing assets without having to forfeit their future gains.

What is the Problem Faced by Indian Investors?

India boasts over 60 million investors in stocks and mutual funds, many of whom are confronted with liquidity challenges. The prevalent options – liquidating investments or opting for high-interest personal loans – present significant drawbacks. Liquidating investments can lead to the loss of compounding growth and hefty capital gains taxes of up to 35%, while personal loans come with an interest burden exceeding 18%.

These investors often earmark their investments for crucial future needs such as children's education or retirement. Liquidating these investments is generally a last resort, leaving them with the daunting prospect of high-interest personal loans. This scenario underscores a critical need for a better financial solution that allows investors to maintain their investment growth while accessing the required funds.

How Does Yenmo Provide a Solution?

Yenmo addresses this gap by offering a streamlined, efficient, and cost-effective solution. The startup enables Indian investors to pledge their investments digitally and instantly secure loans at a fixed interest rate of 10.5%. This process, developed in collaboration with leading financial institutions and government agencies, is designed to be quick and user-friendly, taking less than five minutes.

The platform allows users to view all their investments in real time, select the assets they wish to borrow against, and receive funds directly into their bank accounts. This system ensures that their investments continue to grow while providing immediate financial liquidity. By leveraging technology and strategic partnerships, Yenmo is transforming the way Indian investors access cash, making the process more efficient and affordable.

What is the Vision Behind Yenmo?

Yenmo's core purpose is to empower every Indian with the best financial solutions tailored to their unique circumstances. The concept of Loan Against Investments (LAI) is an excellent starting point for this vision. Despite its suitability for the Indian market, LAI has been either unavailable or cumbersome to obtain through traditional financial institutions. Yenmo aims to change this by offering a seamless, digital-first approach.

The startup's broader vision includes reimagining various financial products such as loans, credit cards, credit on UPI, and Buy Now Pay Later (BNPL) services. By leveraging their clients' investments, Yenmo seeks to unlock greater value and provide more versatile financial solutions. The ultimate goal is to evolve into the go-to destination for all Indian consumers seeking comprehensive financial solutions.

Who are the Founders and What Drives Them?

Yenmo was founded by Ashutosh Purohit and Aryan Agarwal, two individuals with a shared passion for financial innovation and a strong background in finance and technology. Purohit's experience at Navi, where he led the mutual fund arm to achieve $625 million in assets under management (AUM) in just one year, and his work at Swiggy, where he spearheaded the company's expansion from 30 to 500 cities in 1.5 years, equipped him with the expertise to identify and address the financial needs of Indian consumers.

Aryan Agarwal, with a background in finance and technology, previously worked at Browserstack and later started a capital management company with over $2 million AUM. His technical acumen and financial expertise complement Purohit's vision, making them a formidable team. Both founders share a commitment to providing innovative credit solutions and are deeply obsessed with enhancing financial products for Indian consumers.

How Does Yenmo Revolutionize Access to Liquidity?

Yenmo's approach to secured consumer lending is revolutionary in its simplicity and efficiency. By allowing investors to pledge their investments digitally, the platform eliminates the need for cumbersome paperwork and lengthy approval processes. The entire process, from viewing investments to receiving funds, is completed in less than five minutes, setting a new standard for speed and convenience in the financial sector.

The fixed interest rate of 10.5% offered by Yenmo is significantly lower than the average personal loan rates in India, which can exceed 18%. This not only makes borrowing more affordable but also ensures that investors do not have to liquidate their assets, preserving their long-term financial growth. Yenmo's collaboration with financial institutions and government agencies ensures that the platform adheres to regulatory standards while providing a secure and reliable service.

Why is Yenmo's Offering Unique in the Market?

Yenmo stands out in the market due to its unique combination of technology, strategic partnerships, and a deep understanding of the financial landscape in India. The platform's ability to offer instant loans against investments at a competitive interest rate fills a significant gap in the market. Traditional financial institutions either do not offer such products or make the process extremely tedious and time-consuming.

By leveraging technology, Yenmo provides a seamless user experience, allowing investors to manage their finances more effectively. The platform's real-time investment tracking and instant loan disbursement are unparalleled in the industry. Furthermore, Yenmo's fixed interest rate provides certainty and transparency, which are crucial for financial planning.

How Does Yenmo Plan to Expand Its Offerings?

Yenmo's current focus is on loans against investments, but the startup has ambitious plans to expand its range of financial products. Future offerings may include reimagined versions of traditional financial products such as credit cards, UPI-based credit solutions, and BNPL services. By continuously innovating and leveraging technology, Yenmo aims to provide more versatile and value-added financial solutions to its customers.

The startup's long-term vision is to become the preferred financial partner for Indian consumers, offering a comprehensive suite of products that cater to their diverse financial needs. By staying attuned to market trends and consumer feedback, Yenmo plans to evolve and adapt its offerings to ensure they remain relevant and valuable to its users.

What Impact Can Yenmo Have on the Financial Well-being of Indian Consumers?

Yenmo has the potential to significantly enhance the financial well-being of Indian consumers by providing them with more affordable and efficient access to liquidity. By offering loans at a fixed interest rate of 10.5%, Yenmo can help investors avoid the high costs associated with personal loans and the financial setback of liquidating their investments. This can lead to better financial planning and greater overall wealth accumulation for individuals.

Furthermore, by expanding its range of financial products, Yenmo can offer more comprehensive solutions that cater to the varied needs of its customers. This can empower more Indians to achieve their financial goals and improve their quality of life. Yenmo's commitment to innovation and customer-centricity positions it well to make a lasting positive impact on the financial landscape in India.

Conclusion

Yenmo is poised to transform the way Indian investors access liquidity, offering a smarter, more affordable alternative to traditional personal loans. With a clear vision, innovative approach, and a dedicated team, Yenmo is set to become a leading player in India's financial sector. By addressing the critical need for more efficient and cost-effective financial solutions, Yenmo is not only filling a market gap but also empowering millions of Indians to achieve their financial goals. As the startup continues to evolve and expand its offerings, it is well on its way to becoming the go-to destination for comprehensive financial solutions in India.