A recent report by MD Finance, a global fintech leader, highlights the impressive growth of India's non-banking financial companies (NBFC) and alternative lending sector. The study reveals a significant 21.5% year-over-year increase in aggregate income for NBFCs in 2023, while the alternative lending portfolio surged by 27%. Additionally, active loans grew by 14%, indicating a robust market trend since 2021. This expansion is driven by rapid technology adoption, a youthful tech-savvy population, and supportive government policies. Key findings include over 350 digital lending firms generating substantial revenues, with banks, NBFCs, and microfinance institutions holding a combined 72% market share.

The Rise of Digital Lending in India

India's digital lending sector has experienced remarkable development, fueled by increased consumer demand and innovative financial services. Since the pandemic began, the country has embraced advanced technologies to meet the growing need for contactless and paperless transactions. Government initiatives have further strengthened this ecosystem, fostering an environment conducive to private investments and innovation. Over 350 companies now operate in this space, collectively generating the largest portion of capital raised, accounting for 85% of total funding.

In recent years, India has seen a surge in digital lending platforms that cater to diverse customer segments. These platforms offer personalized services and streamlined processes, making it easier for consumers to access credit. The sector has witnessed a doubling in the value of new loans issued between 2021 and 2024, while the number of new loans has increased by 1.5 times. This growth underscores the increasing trust and reliance on digital lending solutions among Indian consumers. Moreover, the rise in active loans from €142M in March 2023 to €161M in March 2024 reflects a steady upward trajectory in market engagement.

Alternative Lending: A Driving Force Behind Financial Inclusion

The alternative lending segment in India has become a cornerstone of financial inclusion, with banks, NBFCs, and microfinance institutions playing pivotal roles. Together, these entities hold a dominant 72% share of the market portfolio. The sector has demonstrated consistent year-over-year growth, particularly in the value of new loans issued, which doubled from 2021 to 2024. This expansion is attributed to the increasing adoption of digital platforms and innovative financial products tailored to different regions and customer segments.

Between 2022 and 2023, the aggregate income of NBFCs grew from €44.2 billion to €53.7 billion, marking a 21.5% increase. Total assets also saw a 15% rise, climbing from €446.9 billion to €513 billion. The alternative lending portfolio showed a 14% growth in active loans, reaching €161 million as of March 2024, up from €142 million in March 2023. The outstanding portfolio value increased by 26.8%, from €39.5 billion in 2023 to €50.1 billion in 2024. Experts predict that by 2030, most fintech segments will experience a 4-6 times increase, driven by product diversification, enhanced client service, and strategic partnerships.

Since its inception in 2018, Gozem has rapidly grown from a ride-hailing service in Togo to a comprehensive super-app across French-speaking West Africa. The company now offers a wide array of services including ride-hailing, commerce, vehicle financing, and digital banking in countries such as Togo, Benin, Gabon, and Cameroon. Recently, Gozem secured $30 million in Series B funding, split evenly between equity and debt. This investment, led by SAS Shipping Agencies Services and Al Mada Ventures, will be used to enhance its vehicle financing services and expand into new markets. Gozem's unique approach focuses on ensuring financial security and career growth for its drivers, distinguishing it from competitors.

Rapid Expansion and Strategic Investments

In the heart of French-speaking West Africa, Gozem has been steadily transforming the mobility and financial landscape since its launch in 2018. Initially providing ride-hailing services in Togo, the company has expanded its footprint to include Benin, Gabon, and Cameroon. Gozem's platform now supports various modes of transportation, including motorcycles, three-wheelers, and cars, while also offering vehicle financing to help drivers purchase vehicles through affordable installment plans.

The recent $30 million Series B funding round marks a significant milestone for Gozem. Led by SAS Shipping Agencies Services and Al Mada Ventures, this capital injection includes both equity and debt components. The funds will primarily bolster Gozem's vehicle financing services, which have already facilitated the acquisition of around 7,000 vehicles for drivers. Additionally, the company aims to explore new markets and continue its rapid expansion across Francophone Africa.

Gozem's founders, Gregory Costamagna and Raphael Dana, emphasize the importance of supporting professional drivers. By building an ecosystem that helps drivers earn more and advance their careers, Gozem ensures the success of its entire business model. The company's vehicle financing program allows drivers to gradually upgrade from motorcycles to cars, ultimately becoming full vehicle owners. This long-term strategy sets Gozem apart from other platforms and attracts a loyal driver base.

Beyond its core services, Gozem has ventured into digital ticketing and banking. The company resells event tickets and processes millions of dollars daily through its mobile payment service, Gozem Money. With nearly 10,000 registered drivers and over a million users, Gozem is well-positioned to capitalize on its diverse offerings and achieve substantial growth in the coming years.

The Series B funding not only validates Gozem's innovative model but also underscores the confidence of industrial and financial investors operating in the same markets. As Gozem looks to triple or quadruple its growth by 2025, the company is poised to become a leading force in the African tech ecosystem.

From a journalist's perspective, Gozem's success story highlights the potential of tailored solutions in emerging markets. By focusing on the specific needs of professional drivers and integrating multiple services under one platform, Gozem demonstrates how addressing local challenges can lead to scalable and sustainable business models. This approach could serve as a blueprint for other startups aiming to thrive in similar environments.