Ignite Startups: Unlocking Low-Interest Loans With Ashutosh Purohit of Yenmo | Ep83

Ignite: Conversations on Startups, Venture Capital, Tech, Future, and Society

In the latest episode of the Ignite podcast, host Brian Bell sits down with Ashutosh Purohit, the CEO and founder of Yenmo. Ashutosh introduces Yenmo, a company based in India that offers loans against mutual funds and securities. He explains how Yenmo provides low-interest loans by holding mutual funds or stocks as collateral, reducing the interest rates to about 50% lower than typical personal loans in the market. Ashutosh shares the inspiration behind Yenmo, which stemmed from his experience at Navi, an Indian financial services company. While working at Navi, he observed that a significant number of people seeking high-interest personal loans already had investments in mutual funds. This insight led him to explore the idea of using mutual funds as collateral for loans, ultimately leading to the creation of Yenmo. He highlights the structural differences between the U.S. and Indian markets, noting that in the U.S., brokers can lend money directly against securities, a practice not allowed in India. The conversation delves into the operational challenges and the market potential for Yenmo. Ashutosh emphasizes the rapid growth of the mutual fund market in India, which is expanding by 25-30% annually. He discusses the importance of digital transformation in financial services, which has enabled Yenmo to streamline the loan process from a cumbersome two-week ordeal to a quick two-minute transaction via their app. This innovation is poised to make a significant impact on the market, making secure lending more accessible and efficient. Brian and Ashutosh also touch upon the long-term vision for Yenmo. Ashutosh envisions Yenmo evolving into a full-service bank that offers a range of financial products and services, leveraging technology to provide a seamless and trustworthy experience for customers. He stresses the importance of thinking long-term while executing short-term goals, a philosophy that has guided him through the challenges of building a startup. The episode provides valuable insights into the journey of a fintech entrepreneur and the transformative potential of technology in the financial sector. Chapters: Introduction (00:01 - 00:17) Ashutosh’s Background and Yenmo Overview (00:17 - 00:56) Inspiration Behind Yenmo (00:56 - 02:44) Market Differences: India vs. U.S. (02:44 - 05:04) Challenges in the Indian Market (05:04 - 07:09) Why Now for Yenmo (07:09 - 08:56) Long-Term Vision for Yenmo (08:56 - 11:21) Experiences with Y Combinator (11:21 - 15:37) Importance of Co-founders (15:37 - 17:29) Building and Launching Yenmo (17:29 - 19:20) YC Application and Feedback (19:20 - 22:28) Engineering and Building from Scratch (22:28 - 25:28) Yenmo’s Digital Transformation (25:28 - 27:31) Building Trust in the Indian Market (27:31 - 28:11) Rapid Fire Questions (28:11 - 35:40) Closing Remarks and Contact Information (35:40 - 40:46)