Yenmo

Yenmo, is a Bengaluru-based fintech startup specializing in secured consumer lending. The company provides innovative financial solutions by offering loans against investment securities such as mutual funds, stocks, and other assets. Its mission is to empower Indian investors with liquidity without disrupting their long-term financial growth. Yenmo’s services cater primarily to retail investors seeking short-term funds while preserving the compounding benefits of their investments.

Core Products and Services

Loan Against Mutual Funds: Yenmo allows users to pledge their mutual fund investments as collateral to access instant loans at a competitive flat interest rate of 10.5%.

• Digital Lending Platform: A seamless, fully digital process enables users to view their investment portfolio in real time, select assets for borrowing, and receive funds directly into their bank accounts within minutes.

• Flexible Repayment Options: Borrowers pay only the interest during the loan tenure, with the flexibility to repay the principal at their convenience.

• Future Expansion Plans: Yenmo aims to extend its lending products to include stocks, insurance policies, digital gold, and land.

Unique Value Proposition

Yenmo differentiates itself by democratizing access to asset-backed loans, previously available only to high-net-worth individuals. The platform eliminates the need for credit score checks and ensures that investments continue growing while providing immediate liquidity. This approach addresses a significant gap in the Indian market, where retail investors often liquidate investments or take high-interest personal loans for short-term needs.

Business Model & Revenue Streams

Yenmo operates on a robust business model centered around asset-backed lending. Its primary revenue streams include:

Interest Income

• Yenmo charges a flat interest rate of 10.5% on loans disbursed against mutual funds or other pledged assets. This forms the core of its revenue.

Processing Fees

• A small one-time processing fee is charged for each loan transaction, contributing an additional income layer.

Strategic Partnerships

• Yenmo collaborates with banks and NBFCs to facilitate lending operations, earning commission-based revenue from these partnerships.

Future Revenue Streams

• As Yenmo expands into lending against stocks, insurance policies, and digital gold, it expects to diversify its revenue base further.

Customer Segmentation

• B2C (Retail Investors): Individuals holding mutual funds or other investments who require short-term liquidity without liquidating their assets.

• B2B (Small Businesses): SMEs looking to leverage company-owned securities for working capital needs.

Growth Strategy

1. Market Expansion:

• Focused on increasing penetration into Tier 2 and Tier 3 cities across India to serve underserved retail investors.

2. Product Diversification:

• Plans to introduce new financial products such as loans against stocks, digital gold, and land to cater to diverse customer needs.

3. Technology Integration:

• Leverages advanced technology for real-time portfolio tracking and instant fund disbursement, ensuring a superior user experience.

4. Strategic Partnerships:

• Collaborating with leading banks and NBFCs to scale operations while maintaining competitive interest rates.