Srei Equipment Finance, Bank of Baroda to co-lend through iQuippo platform
Srei-Bank of Baroda partnership through iQuippo platform would lend loans to benefit B2B, B2C segments in the equipment finance industry through product cross-selling.
In a bid to lend loans to benefit B2B (business to business), B2C (business to channel) segments through product cross-selling, Srei Equipment Finance Limited ("SEFL") — a wholly-owned subsidiary of Srei Infrastructure Finance Limited ("Srei") — and Bank of Baroda on April 18 announced a strategic alliance to offer joint loans for infrastructure equipment under a co-lending arrangement. iQuippo, a Kanoria Foundation initiative, will facilitate the sourcing of loans under this program.
Speaking about the benefit that B2B and B2C business would get from this development PS Jayakumar, Managing Director and CEO at Bank of Baroda said, "Given that the increase in mechanisation is critical to timely and cost-efficient to large infrastructure and housing projects, there is a strong need for robust financing of equipment. We are delighted to partner with Srei and through this and other efforts, contribute to the development of the equipment finance industry and further the Make In India program for construction equipment."
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Elaborating upon the partnership, Sunil Kanoria, Vice Chairman at Srei said, "Bank of Baroda has a strong track record, brand appeal and experience in customer services, which will be complemented by Srei's knowledge, experience and strong partnerships in the equipment finance space. The alliance will create value for both businesses and customers, and continue our leadership position in the equipment financing business."
Standing in sync with Sunil Kanoria's views; Devendra Kumar Vyas, Managing Director, Srei Equipment Finance Limited added: "The combined strengths Srei Equipment Finance and Bank of Baroda will prove to be extremely beneficial for our customers together. Apart from access to affordable financing, they will be able to explore a wide range of innovative banking products. This partnership will also complement the expansion plans of Bank of Baroda with access to new customer segments as well as geographies."
Speaking on the development Anant Raj Kanoria, CEO, iQuippo said, "we are very excited to add the second largest bank in India to our list of partners. Bank of Baroda with its reach and network will be able to leverage our risk engine and digital process to an onboard a new segment of customers, especially in the SME and MSME space. Also with Bank of Baroda’s uniqueness, we will be able to service strategic clients and fleet owners who would be able to take advantage of the bank’s differentiated product offering. We will assist our partner with the strength of technology to offer seamless services to our customers at the touch of a button while ensuring efficiency and transparency in the process."
The partnership will allow SEFL and Bank of Baroda to collaborate, co-operate and widen their respective markets and customer base. The partners, through this strategic alliance, will be able to leverage each other's customers and cross-sell their products. The offerings would include both businesses to business ("B2B") and business to customer ("B2C") propositions.
The two partners will also use the platform of iQuippo, a unique digital marketplace, for loan origination, loan dues collection, auction of equipment, valuation of equipment and several other facilities provided by the platform. With over 70,000 customers and over $400 Million loans disbursed through iQuippo, SEFL and Bank of Baroda will jointly offer loans and other services for construction and mining equipment ("CME"), tippers, IT and allied equipment, medical and allied equipment, and farm equipment.