Andromeda Plans New App For MF Distribution, Records 22% Jump in Home Loans Business in FY24

Andromeda Sales and Distribution (ASD), India’s largest loan distributors, are now stepping into the mutual fund segment through “Andromeda Wealth”, a separate, wholly-owned subsidiary. Announcing the move, Raoul Kapoor, Co-CEO of Andromeda Sales, said, “The strategic intent behind our foray into mutual fund distribution is to harness the network as well as huge number of customers we have acquired in our loan distribution business over last three decades.”

Andromeda Wealth is likely to get operational in a month’s time since all the regulatory approvals for MF distribution are in place. This app will be dedicated for distribution of mutual funds.

The news about ASD’s foray into mutual fund distribution comes at the heels of another great news for the company!

Buoyed by a stellar growth in its home loan segment, India’s largest loan distribution network saw a 22% jump in its home loan business for FY24. From Rs 27,798 crore in FY 23, the home loan section of the company facilitated business worth Rs 33,918 crore in FY24. Apart from earning a 10.33% hike in its Loan against Property distribution, the company also saw its business loans segment rising 32%. This notable surge has helped the network record more than 23% growth in its overall loan disbursal business, clocking business worth Rs 75,397 crore during the Fiscal year 2023-24.

ASD, born in 1991, began its journey as a Direct Sales Associate for Citibank but has now grown to be the country’s largest loan distribution company. It disburses loans in home, property, personal, business, etc sectors. Besides loans, Andromeda and its group companies also work in other segments like insurance and mutual fund distribution.

Commenting on the primary revenue drivers for Andromeda, Home Loans and Loans against Property, Co-CEO Raoul Kapoor said, “Despite a 50-bps increase in interest rates, the demand for home loans continues to grow, buoyed by a positive economic outlook. Digitalization, faster approvals, and increased availability and flexibility have fueled higher demand for personal loans.” If you look at the almost 5 times increase in ASD’s loan portfolio – from Rs 15,333 crore in FY 2018-19 to Rs 75,397 crore in FY24 – you would understand that this exponential growth isn’t without good reason.

The country has seen a significant surge in affordable housing loan sector, especially during the second half of the current fiscal while the demand for personal loans among the high-ticket-size salaried employees has increased too. At the same time, Andromeda has widened its national network by adding many new branches. Even after having spread to more than 100 towns and cities, the company is showing no signs of slowing down. In fact, it aims to increase its number of branches quite considerably in the current fiscal.

In a lookahead, Mr. Kapoor has anticipated an all-round growth for the company, be it in the number of agents, adding more to its product portfolio, or expansion of branches, with clear focus on tier 2 and tier 3 cities.

The company has also decided to rely increasingly on latest technology, which would not only allow it to coordinate the business between the present 470 branches, but will also help the teams to reach out to more customers seeking loans in various segments. In fact, Mr. Kapoor informed, “Andromeda understands the need for latest technology if it has to stay ahead of its competitors. In fact, we recently launched an app called One Andro, which has garnered a wonderful response so far.”

(The writer is a Mortgage Specialist, Zonal Manager with Andromeda (India’s largest loan distributor) and occasional political commentator.)