OPL in talks to sell stake to AvenuesAI, eyes AI-powered credit revolution
New Delhi, May 29
In what could be one of the most strategic moves at the intersection of digital lending and artificial intelligence, Online PSB Loans Limited -- the operator of India's largest public-sector-backed digital credit platform -- is in advanced negotiations to induct AvenuesAI Limited as a minority stakeholder by way of secondary share sale.
On Friday, AvenuesAI Limited in its stock exchange filings said that the board has approved the proposal to pick 7% minority equity stake in Online PSB Loans Limited (OPL) as a strategic investment.
Speaking to ANI, Vishal Mehta, Chairman and Managing Director, AvenuesAI Limited said that term sheets have been signed and soon both the companies will start working on closing. He further clarified that the deal is expected to be concluded within this fiscal year, subject to statutory requirements.
As per market experts, this deal would place AvenuesAI into a marquee shareholder consortium and further strengthen the institutional shareholder base of OPL that already reads like a who's-who of Indian banking -- including State Bank of India, HDFC Bank, Small Industries Development Bank of India (SIDBI), Bank of Baroda, Punjab National Bank, SBI Cards and Payment Services, BOB Capital Markets, Indian Bank, HDFC Bank, TransUnion and other blue-chip financial institutions. Post equity deal, AvenuesAI would be the only AI led platform company within the investor consortium bringing a differentiated combination of payments infrastructure, enterprise communication frameworks and large digital consumer base.
As a shareholder, AvenuesAI will bring more than just capital. It brings merchant ecosystem that can turbocharge with OPL's lending engine while leveraging AvenuesAI's AI capabilities. While for AvenuesAI, the deal is an excellent opportunity to embed itself into the backbone of India's public-sector credit ecosystem. The company's AI models and vast merchant network could plug directly into OPL's high-volume lending engine.
With India's digital lending infrastructure deepening rapidly, the convergence of AI frameworks, payments technology and data as well as public-sector digital banking is creating a new paradigm in credit access for the underserved.
As per OPL website and LinkedIn post, today it has over 235 partner banks and financial institutions, has sanctioned loans worth more than INR 3,97,000 crore, and onboarded over 30 lakh MSMEs. Beyond its core operations, OPL has developed 70+ fintech and credit infrastructure products and powers multiple national-scale lending and government-linked financial platforms, including PSB Loans, JanSamarth, GST Sahay, and other digital credit initiatives.
— ANI
Reader Comments
Interesting move, but I hope AvenuesAI's involvement doesn't lead to over-reliance on AI for lending decisions. We've seen cases where algorithms can be biased against certain groups. Need strong human oversight and regulatory checks. The public sector banks' presence is reassuring though.
As someone running a small manufacturing unit in Pune, this gives me hope. Earlier we struggled with getting working capital loans from regular banks. With OPL's platform and AI-powered credit assessment, maybe the paperwork will reduce and disbursal will be faster. Fingers crossed 🤞
The shareholder consortium reads like a who's who of Indian banking - SBI, HDFC, PNB, SIDBI etc. Adding an AI company to this mix is smart. But more than just capital, they need to ensure data privacy is maintained. AI models accessing customer data from public sector banks... that's sensitive territory.
Finally, someone is connecting the dots between AI and traditional banking infrastructure! Our public sector banks have been lagging behind in tech adoption. This could be the bridge that takes India's digital lending to the next level, especially for MSMEs who are the backbone of our economy. Great news! 🌟
Rs 3,97,000 crore already sanctioned! That's mind-boggling scale. If AI can even improve turnaround time by 20-30%, imagine the impact on credit access for the underserved. But we must ensure this doesn't become another case of "technology for technology's sake" - the user experience for our village-level entrepreneurs should be top priority.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.