Magma, a trusted Indian financial services group, helps its customers to “invest in even the smallest dream”. It is currently making more than 650,000 dreams come true across India.
The company reaches emerging consumers across rural and semi-urban India with vehicle finance, housing finance and general insurance. Led by an outstanding entrepreneurial team, Magma is delivering on its original vision: to bring financial services to the unbanked in some of India’s poorest regions. The majority of customers are experiencing formal financial services for the first time.
Rural India represents an enormous market opportunity with a population of over 850 million people, roughly two-thirds of the country’s total population. Two out of five rural households rely on informal credit sources or local money-lenders that often charge usurious interest rates. Within that market, the ‘self-employed’ borrower segment is highly attractive; this group of striving entrepreneurs has generally been overlooked by non-banking financial companies but represents an exciting business opportunity to serve pent-up demand with formal financial services..
Magma is well placed in the non-banking financial services market, with its robust rural distribution network and a large and loyal customer base.
Both LeapFrog and Magma see tremendous opportunity to drive value creation through operational improvements and expansion, in both the lending business and the insurance business. This includes areas such as distribution, product design, and health insurance.
“This transaction is not just about capital but the foundation of a lasting partnership.”
Sanjay Chamria, Vice Chairman & MD of Magma