oCap Management expands into India with GoCapital Finance investment
oCap Management, a Singapore-grown business financing provider, announced its entry to India through a partnership with local Non-Banking Financial Company (NBFC) and short-term loan provider to micro, small and medium enterprises (MSMEs) GoCapital Finance.
The partnership deals involved a share subscription agreement for 25 per cent stake in GoCapital, which is still subject to regulatory approvals. It was done via oCap subsidiary oCap Asia Pacific Holding Pte. Ltd.
India is known as one of the world’s largest MSME markets and oCap’s entrance signifies the step towards providing innovative artificial intelligence (AI)-driven financial services for India’s 55 million merchants.
After the recent launch of Merchant Cash Advance (MCA) in Singapore, oCap offers merchants a short-term financing solution to support their business goals effectively. oCap targets MSMEs with electronic payment acceptance, providing immediate cash for a share of the merchant’s future receivables.
Carlos Haeuser, Chief Executive Officer of oCap, commented: “In line with our overseas expansion plans, GoCapital is an ideal partner that complements oCap’s value proposition in addressing the needs of a market largely underserved by traditional lending systems. As we scale our operations in the region, we continue to be the go-to business partner that provides capital responsibly to enable growth and unlock potential for businesses.”
oCap offers fully automated processes on a blockchain-based platform to provide businesses with instant access to liquidity. With the AI-enhanced Risk Management System, oCap provides a customer experience for on-boarding and credit underwriting and leverages application programming interfaces for integrated operations with Acquirers, Payment Facilitators, and Merchants.
In 2018, oCap made news when circuit maker company CPH acquired it for a reverse takeover deal for US$45 million.
GoCapital Finance Limited was established since 1996 in Chennai, India, GoCapital is an NBFC that provides short-term loans and is involved in activities auxiliary to financial intermediation, except insurance and pension funding.