Chit funds a.k.a ROSCAs (Rotating Savings & Credit Associations) are among the most popular form of savings in not just India, but in most emerging markets globally. They present an opportunity to save and borrow simultaneously among trusted social circles and enable low-income people to convert small savings into lump sums.
In India, formal and registered chit funds date back 120 years. The industry however, is plagued with manual processes and cash transactions. Unlike popular perception, chit funds are a fairly regulated industry in India. However, formal or informal, most chits are highly fragmented, transact manually and often lack transparency.
KyePot, a digital platform launched in 2018 for savings, has the first mover advantage in digitizing and disrupting this massive market.
The company offers monthly savings of INR 2,000 to 20,000 to individuals and small businesses acquired through online and offline channels.
The KyePot platform uses technology to make savings more convenient and efficient by learning people’s behaviors. Algorithms are used to match borrowers and lenders based on investing patterns, backgrounds, demographic and risk profiles.
As per various researches it is estimated that the vast majority of the chit fund subscribers in India are the low-income masses. Most of them possess a mobile phone yet transact (pay, bid etc.) manually.
KyePot’s helps them access data real time and invest in the right and most importantly verified chit funds.