Previously we looked at the elaborated marketing strategy of Microsoft, the world’s leading software application provider. Now, let us hop over and look at the elaborated SWOT Analysis of Financepeer.
Long story short, Financepeer is providing loans via peer-to-peer lending. Financepeer is a Fintech company.
Why we don’t know about this company is they don’t work on marketing and their brand awareness. If you don’t want to make this type of mistake and are interested in learning Digital Marketing then kindly check out Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
In this blog, we will cover the strengths, weaknesses, opportunities, and threats surrounding Financepeer. Before we begin, let us begin by learning about the company, its history, products, services, and financial success.
Financepeer was founded by Rohit Gajbhiye in 2017. The headquarters of Financepeer is in Mumbai. It provides personal loans to parents/students to help them pay their school fees. It provides zero-cost, zero-interest loans to them. They can pay the number of loans in easy instalments of 9-12 months.
The best thing the company does is start with a survey to understand the pain point of parents who were not able to pay the fees. The company found that the majority of parents need EMI options for school fees. Here the company found a gap and designed a business model for parents who are not able to pay their children’s education fees. Now the company understands that if the interest amount is high parents are also not able to take the loan for their children.
When the company started, it reached its first 100 clients within 3 months. Today the company has more than 22,00,000 students and more than 6000 Institutes in 60+ different cities. And last year Financepeer raised its funding by 3.7M $.
Ashish Mittal is an advisor of Financepeer company and he has 30+ years of experience in the Finance Industries. Vivek Anand Oberoi and Balaji Shrikant are also advisors of the Financepeer company. In Fintech Balaji Shrikant has more than 25 years of experience. And he is an executive Director at Financepeer company.
|No. of Employees||250+|
|Annual Revenue||$39.9 Million (2021)|
|Net Income/ Profit||N/A|
Services Offered by Financepeer
Various services offered by the Financepeer are:
Competitors of Financepeer
- Drip Capital
As now we have a better understanding of Financepeer, let’s look into the SWOT Analysis of Financepeer.
SWOT Analysis of Financepeer
A SWOT analysis identifies a company’s strengths, weaknesses, opportunities, and threats. A proven and true management paradigm that allows Financepeer to compare its business and performance with competitors and the industry as a whole.
So let us go ahead and first have a glance at the strengths of Financepeer from the SWOT analysis of Financepeer.
Strengths of Financepeer
As one of the leading companies in the industry, Financepeer. It has numerous strengths that make it stand out in the market. These strengths not only help protect your market share in existing markets but also help you penetrate new markets.
- Employees & Office: Financepeer has 253 young and dedicated employees to grow its company and it has 7 offices to capture the market. Due to 253 employees and 7 offices, the company’s growth is extremely high.
- Service Provides: It provides loans with zero cost, and zero interest over 60+ cities. Due to zero cost, zero-interest loans people are joining this company. It provides online and offline learning platforms. It has lots of courses for students.
- Technology and Guidance: They use their application to provide loans so people don’t need to go outside for the loans and it also guides how to use the app. Also, Financepeer guides its customers on how to use apps and how to process loans and how pay the amount of a loan in instalments.
- Loans & Installments: It provides zero-cost, zero-interest loans and students & parents can pay the amount of the fees in 9/12 easy instalments.
- Funding Raised: Last year the company raised 3.7M $ of funding. It is a good amount of funding.
- Awards & Recognition: Recently, Financepeer won the award of the Best Emerging Company 2020 in the School Fees Funding Category. The award and recognition have created a positive brand image for the company.
- User-Friendly Application: The digital application created by Financepeer is user friendly that can easily be usable by students and parents. It is a 4-step process through which students can easily pay off their fees freely but also be rewarded for every transaction they make.
Weaknesses of Financepeer
Strategy is all about choices and weaknesses are areas where companies can improve through SWOT analysis and leverage their competitive advantage and strategic positioning.
- Time Started: Company started in 2017 the company has only 5 years of experience compared to others it has less experience. Other companies like Creditas are one year older than Financepeer. The company needs more experience and more brand awareness.
- Marketing: The Financepeer company doesn’t use digital marketing. They need to do brand awareness so that people will know the company exists and provide zero cost, zero-interest loans. Marketing is the thing that the company shouldn’t ignore.
- Personal Teaching: Financepeer has video lectures but it doesn’t provide personalized teaching. Financepeer company doesn’t provide a personal trainer to students.
- Legal Regulation: There are so many countries that consider soliciting investment from general people illegal. In short, many countries consider peer-to-peer illegal.
- P2P: There are lots of disadvantages of P2P lending. There is a credit risk, no insurance/government protection in P2P, legislation. Altho peer-to-peer provides a low amount of interest to borrowers and high returns to investors, it has lots of disadvantages compared to advantages.
- Low Investment in New Technologies: Given the scale of the expansion and the multiple geographic regions in which the company will expand, Financepeer’s overall integrating processes require more money to be invested in technology. Current investments in technology are not aligned with the company’s vision.
Opportunities for Financepeer
Opportunities are potential areas for companies to focus on to improve results, increase sales, and ultimately profit.
- Reach Customers: Financepeer should reach students and parents who require loans for their studies and make them a customer. Schools and college students need loans for their studies.
- Abroad Study: There are lots of students who want to study abroad but due to financial conditions they don’t. A minimum of 10 to 20 lacs rupees are required to study abroad and student loans have very high-interest rates. Financepper can tap this market to solve the problem.
- New Customers Through Online Channels: The company has invested huge amounts of money in its online platform over the past few years. This investment opened up a new sales channel for Financepeer. Over the next few years, companies will be able to seize this opportunity by better understanding their customers and meeting their needs through big data analytics.
- Technological Advancements: Technology provides various benefits in a variety of fields. Costs can be saved by self-operating. Technology allows for much better data collection on customers and improves marketing efforts.
- Government Support: The company should seek financial support from the government of India because the company operates in a sector in which the government involvement is very high. Financepeer can get subsidiary support from the government.
Threats to Financepeer
Threats are environmental factors that can harm a company’s development. Here are some of Financepeer’s threats:
- Competitor Raising Funds: Cretditas raised $231M over 2 years ago and it raised $314M of the total fundraising. Competitors raising this huge amount of funds is threatening Financepeer.
- New Entrants: A mow down of new players have entered the market and are gaining market share taking up the market share of existing companies. Financepeer faces a threat because these new entrants may steal its customers.
- Competitor Technical Advancements: New technological progress by a few competitors within the sector constitute a threat to Financepeer since customers who are drawn to this new technology may switch to competitors, reducing Financepeer’s overall market share.
This ends our extensive SWOT analysis of Financepeer. Let us conclude our learning below.
Financepeer is a financial institution providing financial services to students. In the SWOT Analysis of Financepeer, we observed that the company is yet to enjoy strong brand recognition and trust with its customers.
It has a well-structured logistical basis and has reached across all the market verticals it serves, but it also suffers from an increase in the number of manufacturers and competitors in the same vertical and better R&D efforts by its competitors.
With increasing competition in a new vertical, companies are yet to learn how to fight their own battle by winning over their customers with better marketing efforts. In a changing world where digital marketing is of great importance, being well aware and having hands-on knowledge in the field is a must for all marketing enthusiasts.
If you are looking forward to making your career in digital marketing and are interested in learning more and upskilling, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.
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