GE Money Financial services Private limited has recently been in news due to its acquisition by one of the leading private equity firm and Ex-Employees of the organization. GE Money Financial services Private limited has recently been acquired by AION Capital Partners Ltd in collaboration with Mr. Pramod Bhasin and Mr. Anil Chawla, both were previously working as senior executives of GE. The company after the acquisition is called as “Clix Capital”.
About the acquisition of GE Money Financial Services Private Limited by Plutus Financial Private Limited:
The company GE Money Financial Services Private limited is acquired by Mauritius based Plutus Financial Private Limited. Plutus Financial Private Limited is jointly owned by AION Capital Partners, Mr. Pramod Bhasin and Mr. Anil Chawla.
While the value of the deal is still unclear but the experts have hinted that the value of business of GE Money Financial Serviced Private Limited that was acquired is close to $330 Million. The total equity fund of $130 Million, the partners Mr. Anil Chawla and Mr. Pramod Bhasin are expected to bring $20 Million as their own equity contribution, whereas, the remaining equity is expected to be raised and funded by AION Capital. AION Capital is a joint venture of ICICI Venture and Apollo Global Management which is a major US buyout giant.
Further the acquisition states that Plutus Financial Private Limited, a group that includes Mr. Pramod Bhasin, Mr. Anil Chawla and AION Capital will have 100% share holding in the shares of GE Money Financial Services Private Limited. This acquisition indicates a positive shift in India’s financial sector and can definitely be considered a turnkey event. In many ways this transaction underscores the fact that many international private equity investors are interested in making investments in India’s financial services space.Thus experts suggest that Indian market should expect more of such acquisitions in the future.
Know about the Partners of the company
Mr. Pramod Bhasin: Mr. Pramod Bhasin had formerly been associated with GE for 25 years. He was the founder of ‘Genpact’ and former chief executive of GE Capital for India and Asia.
Mr. Anil Chawla: Mr. Anil Chawla before acquiring the GE Money was associated with GE. He was the Managing Director of GE India and Chief Executive Officer of GE Commercial finance wing.
AION Capital: AION Capital is the joint venture company of ICICI Venture Fund Management Company Limited and Apollo Global Management Company Limited.
Knowing GE Capital
- 1993: the company was established in the year 1993 under the name “GE Capital Services India” (GE Capital)The main business of the company back then was commercial lending. The company started its business and focused on commercial lending business in India.
- 1994: the company started its services and focused into consumer finance market in India. For the consumer financing sector GE Capital entered into a joint venture with HDFC limited. This joint venture was known as “Countrywide Consumer Financial Services Limited” (‘Countrywide’).
- 2004: In this year, the formerly formed joint venture of GE Capital and HDFC bank known as the “Countrywide Consumer Financial Services Limited” (‘Countrywide’) was totally acquired by GE Capital and it became the wholly owned subsidiary of GE Group. After the acquisition, the company was renamed to “GE Countrywide Consumer Financial Services Limited” (‘GE Countrywide’). This year also embarked a start of home equity product. Later the company started to offer Home loans. From this year the company started providing home loans to its customers.
- 2006: Another achievement was added to company’s profile this year. . This year GE countrywide entered into credit card space, provided Cash Access and Cash card.. With the introduction in the credit card space, the company renamed itself to “GE Money Financial Services Limited” (‘GE Money’).
- 2009: In this year, GE Money Financial Services limited entered into Auto Leasing Market.
- 2013: This year a major decision was taken by the GE group. 2013 saw GE money exiting from the consumer finance market space. This initiative was taken as a part of GE Global strategy by the GE Group.
- 2016: This is a landmark year in the history of GE group. In this year the GE Money Financial Services limited and GE Capital Services India was acquired by Plutus Financial Private Limited. The company was owned by Mr. Pramod Bhasin, Mr. Anil Chawla and AION Capital. In this acquisition 100% stakes of GE Money Financial Services limited and GE Capital Services India was acquired. The company was rebranded as “Clix”.
Business of Clix
Clix capital was formerly known as GE Money Financial Services and GE Capital Services India. The company under the leadership of Mr. Parmod Bhasin and Mr. Anil Chawla has set a roadmap for making a difference in the financial sector. The Clix Capital team states that the following factors differentiate them from the other financial service providing companies. These differentiating factors of Clix Capital Company are as under:
- Customer First: Clix Capital firmly believes that their customers and customer delight is utmost important. Clix strive towards achieving not just customer satisfaction but customer delight by personalizing the products offered by the company as per the needs of its customers. For Clix, customers and their needs come first.
- Simplicity: Clix team loves simplicity. They want to make the lives of their customers simple by making their products easy to understand.
- Smart Analytics: The Clix team believes in taking smart decisions based on the inputs provided by customers. They believe in making relevant offers, take informed decisions and make customer friendly processes.
- Fin-tech Solutions: Clix believes that customer delight and technology go hand – in – hand. Clix focuses on combining latest technology along with personalization to satisfy customer needs and deliver best to its customers.
Overview of the business of Clix
Business of Clix is four armed. They have spread their business in 4 segments namely: SME lending (small and medium enterprise lending), Consumer Finance, Equipment Finance and commercial lending. Let us briefly learn more about the business carried out by Clix in these segments.
SME lending: SME lending refers to Small and Medium Enterprise Lending. Clix capital offer SME loans to satisfy the capital needs required to run a business. These SME loans are provided for working capital finance, Business Expansion Loans, Capital Expenditure etc. SME lending includes providing loans for following
- Business Loan: Clix Capital offer business loans to SMEs without collateral security for short and medium term financial needs of business. Quick loan processing and disbursement with competitive interest rates are the key features of the business loan provided by Clix Capital.
- Supply Chain: To manage supply chain more efficiently Clix Capital offers tailor made solutions for short term working capital loans for up to 90 days. The SCF loan by Clix capital can be customized to suit the needs of vendor and benefits all parties in the long run. The loan is offered to both supplier as well as distributor as part of SCF solutions.
- Loan against Card Receivable: This loan is for retail merchants who have a POS machine, Clix Capital offers hassle free short term unsecured loan to those merchants. Now the retailer can achieve growth in his business without taking the burden of monthly EMIs for the loan taken. Any retailer or trader can avail this loan to ensure smooth capital flow and keep their business on track. The documentations are quite straightforward and the loan is sanctioned instantly.
- Loan against Property: Clix Capital offers loan against residential and commercial property with easy documentation and quick disbursement of loan. With the clix loan against property, one can unleash the potential of their residential or commercial property. The key features are simple and hassle free documentation, quick processing & transparent pricing. All these features make the Clix LAP solution an attractive proportion for quick and easy financing.
Consumer Finance: Clix capital focuses on fulfilling all the needs of the consumers. consumer finance consist of catering services like:
- Personal loan: Clix Capital offers personal loans to its customers. They make sure that the personal loan is provided quickly to their customers in order to make their experience easy. As compared to the other lenders, Clix personal loans offer higher amounts for the individuals. The loan amount can be between 3, 00,000 and Rs.10, 00,000. Also the interest rates offered in personal loan is highly competitive as compared to other lenders.
- Used Car Loan: Clix Capital provides financing for used cars as per the requirement of the customer. Clix Capital offers flexible repayment options. The entire application process can be done online and the processing time is swift without any hassle of documentations.
- Doctor’s Loan: This loan is offered to doctors who aspire to setup their clinics or purchase new equipment in the hospital or wish to expand their hospital and its operations. This loan is dedicated to cater the needs of doctors. The loan can be availed for various purposes such as setting up a clinic, pathology laboratory, operation theatre or even buying medical or surgical equipments. Clix has partnered with few of the most reputed names involved in manufacturing of medical equipments. This brings technology transfer to the borrower apart from equipment purchase.
- Sales Finance: This type of loan financing can be taken to purchase for all kind of consumer durable products. Be it any electronic goods or kitchen needs such as washing machine or refrigerator. The sales finance loan can be availed instantly.
Equipment Financing: Clix Capital provides financing for purchasing equipments required to carry out business. It can be used for financing equipments including office accessories, plants, machinery, etc.
- Equipment Loans – this is a customized lending solution for such customers who always have an ongoing need of various equipments and prefer to buy them by rather renting or getting on lease with all the attached depreciation benefits.
- Equipment Leases – Clix capital offers tailor made equipment leasing solution with various lease structures, including the sale and lease back proportions.
Commercial Financing: Clix capital understands the need of funds to corporate. Team Clix is eager to fulfill financial needs of corporate required for their growth and expansion. Commercial financing includes financing to businesses and large corporates:
Commercial Lending includes:
- Corporate Loans: It is offered for business, acquisition purpose, working capital finance etc. the Clix Commercial Finance solutions offers industry based lending solutions to meet the core requirement of business, keeping in mind the market conditions & entity size. This ensures that the entity achieves their desired business goals. Apart from the asset-based loans, Clix capital also offers customized solutions to enhance the cash flows, improve debt consolidation and working capital finance & acquisition finance.
- Healthcare Loans: Loans offered to Hospitals or doctors for buying medical equipments like X – Ray Machine, CT scanner, MRI Scanner etc. The loan is designed especially for the professionals and doctors involved in medical profession. Apart from the lending solution, Clix has partnered with few of the most reputed names involved in manufacturing of medical equipments. This brings technology transfer to the borrower apart from equipment purchase.
- Auto Lease Loan: Auto Lease loan offers loan for vehicle acquisition and financing to the corporate. Clix also provides leasing solutions where the corporate can lease Auto without any capital outlay thus keeping capital free for investment of the corporate. The auto lease loan is a comprehensive lending program customized for the corporate for the vehicle acquisition and financing. A 360 degree leasing solutions in provided without any initial capital expenditure, leaving the firm capital free for any investment in coming future.