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Paisapower launches distribution arm

Our Bureau

CHENNAI, Jan. 4

THE Chennai-based Paisapower.com on Thursday launched a 100 per cent subsidiary, Paisapower Network. The company claims that the subsidiary is India's first integrated, multiproduct, Web-enabled, vendor-neutral distribution company for financial products and services.

Using the network, the company plans to gain control over the financial services distribution, and also distribute insurance products and services, an industry that is opening up offering good opportunity to the infomediaries.

Mr P.M. Austin, CEO, Paisapower.com Pvt Ltd, said that the network will be the most efficient way out to reach the non-online consumers, through Web-enabled intermediaries. It is also one of the best ways to generate revenue and cut cost, he added.

The network would be a mix of captive team in six cities, including Chennai, Bangalore, Hyderabad, Pune, Mumbai and Delhi, and franchisees, he said.

Paisapower has a 60-member captive team, around 15 franchisees, and 1,300 investment sub-brokers.

The company will leverage on its relationship with multiple vendors to provide opportunities for the supply chain to cross-sell a variety of financial services products and services, he said.

The franchisee network will operate in 20 locations in the South and Maharashtra within the next 45 days. In the second phase, franchisees in around 15 locations would be appointed by March 31, he said.

The network will link franchisees, institutions and its own team, through Paisapower's extranet (www.network.paisapower.com), a common Web-enabled platform.

A centralised operations team of the network will process all transactions and then forward it to the institutions, Mr Austin said.

The franchisees will get around 80 per cent commission in sectors such as investment, and around 75 per cent on various loans, while the rest will be for the company.

Paisapower has done transactions worth Rs 4.72 crore so far, of which 0.5-2 per cent was the net income, depending on the product and location.

Transactions worth Rs 8 crore are in the pipeline, he said, adding that once the network is in place, the company expects to generate transactions worth Rs 1.5-Rs 2 crore per month.