In a strategic move to reduce reliance on traditional Non-Banking Financial Companies (NBFC) borrowing, digital lenders are turning to public bond markets, as reported by Tech-Economic Times. The shift aims to tap into more diversified borrowing channels, offering potential cost benefits compared to NBFC borrowings.
While NBFC borrowings often come with high costs ranging from 13-15% or more, issuing Non-Convertible Debentures (NCDs) can bring down effective borrowing costs to levels closer to what banks offer, typically between 9-12%. This move not only broadens the funding options for digital lenders but also positions them to operate more efficiently within the financial ecosystem.
Additionally, there are discussions on how advanced packaging techniques could enable India to integrate into global chip supply chains. An executive from Applied Materials highlighted the potential for India to leverage advanced packaging, potentially opening doors to participation in crucial semiconductor supply networks.
This strategic pivot towards bond markets by digital lenders and the exploration of advanced packaging technologies for semiconductor integration underscore the evolving landscape of financial and technological strategies in India’s digital ecosystem.
Source: Tech-Economic Times