Spice Money taps BCG to support new financial services platform

27 October 2023 Consultancy.in 2 min. read

Spice Money, an Indian rural-focused financial services company, has tapped Boston Consulting Group (BCG) to help develop a new digital financial services platform aimed to benefit its Indian customers.

Due to the government’s strong push for financial inclusion initiatives supported by a fast maturing digital infrastructure, India is seeing seen a remarkable increase in the use of digital technology by wide swaths of the population. This has helped to close the gap between urban and rural areas of the country and brought millions of underserved citizens into the formal banking system.

Spice Money now aims to expand its offerings to the rural market, by establishing a new platform designed to meet market demands. The platform will serve various segments, such as savings, credit and commerce.

Spice Money taps BCG to support new financial services platform

“Spice Money has seen a 94% CAGR growth in its gross transaction value,” said Sanjeev Kumar, CEO of Spice Money. “We aim to sustain this, and at the same time we are looking to build on the rural market opportunities of today, which include credit and savings.”

“This is where we believe BCG can support Spice Money in the next phase of growth so that we can capture the rural market. BCG will work closely with us to identify the areas that require greater attention, keep up with the demand from rural and emerging India, as well as sharpen our business focus,” he added.

Spice Money has over the years expanded its reach to cover 95% of rural pin codes in India, encompassing 250,000 villages, 700 districts, and 5,000 blocks. Furthermore, the platform now supports a substantial user base of 20 million individuals on a monthly basis, marking a significant milestone in its pursuit of its values.

Kumar said that the new platform will contribute to the development of rural India by fostering an ecosystem that is resilient and sustainable. By concentrating on meeting the pressing needs of rural clients and supporting regional companies and industries, the company will be able to attract users to the digital sphere, in order to support national growth and advance the government’s goal of a $5 trillion economy.

Internet use and digitalisation have exploded in recent years in India, with internet penetration in the country going from some 13% nationwide in 2012 to a whopping 48.7% in 2022. The growth of new services around that incredible digital shift is being felt now, with MSMEs being a major engine of that growth and new technologies like AI seen as a major opportunity for India.