Our Bureau
Gurugram
Bharti Airtel has made a big move into the money business. The telecom giant plans to pour Rs 20,000 crore into its new non-banking finance company, Airtel Money Limited. This cash boost sets up a fresh fight with rival Jio Financial Services in India’s fast-growing digital lending market.
Airtel got the green light from the Reserve Bank of India for its NBFC arm just last week. The company aims to use this money over the next few years to offer loans and credit to millions of users. Airtel will fund 70 percent of the amount, while the rest comes from its promoter group. This step helps Airtel shift from just selling phone plans to building a strong finance business.
Airtel sees huge chances in finance, where many Indians still lack easy loans. With over 466 million customers, Airtel can push credit through mobile apps, recharges, and daily services. Its years of data on users give it an edge to check credit fast and safe.
Jio Financial, backed by Reliance, already leads in some areas like business loans. But Airtel bets on everyday people, using its vast network of SIM cards and shops. Players like Bajaj Finance also rule the space, making it a tough battle.
Experts say this could change how telecom firms work. Airtel called it a “growth engine” to serve India’s underserved borrowers. Shares dipped a bit after the news, as investors worry about risks in lending. Still, the race for digital cash is on, and customers may get cheaper, quicker loans soon.
