Better Capital backs lending models that solve merchant and consumer problems before extending credit

Better Capital says portfolio firms OTO, Khatabook, Rupeek, Jai Kisan and IppoPay build distribution through mobility, merchant software, gold loans, rural commerce and payments before layering on credit products.

— FiledThu, 10 Sept, 2026, 12:55 IST·First seen Thu, 10 Sept, 2026, 12:54 IST·Source Entrackr

What happened

Better Capital outlines its India lending thesis: portfolio companies OTO, Khatabook, Rupeek, Jai Kisan and IppoPay acquire customers by solving mobility,

Key facts

  • Five-part series
  • Five to seven years

Why this matters

Look for partnership or acquisition opportunities in merchant software, payments, gold-loan and rural-commerce platforms that can add credit cross-sell capacity.

What to watch

  • Growth in active merchants, payment volume and bookkeeping/invoicing engagement preceding loan disbursals.
  • Repeat-loan rates, repayment behavior and delinquency cohorts for merchant versus consumer borrowers.
  • RBI rules affecting digital lending, first-loss-default guarantees, data use, loan-service-provider structures or KYC.
  • Bank/NBFC co-lending announcements, warehouse facilities, securitizations or equity rounds for the named companies.
  • Gold-price movements, rural income trends, monsoon conditions and agricultural commodity prices affecting secured and rural-credit demand.
  • Merchant fee monetization and payment take rates, which indicate whether firms can sustain distribution without relying on lending yields.
  • Expand proprietary transaction-data capture through payments, invoicing, bookkeeping and merchant-commerce workflows before scaling loan books.
  • Prioritize repeat borrowers and dynamic credit limits tied to verified cash flows rather than broad unsecured customer acquisition.
  • Use secured and hybrid products, including gold-backed credit, invoice-linked financing and supply-chain loans, to preserve loss resilience.
  • Seek partnerships with banks and NBFCs for balance-sheet capacity, co-lending and regulatory-compliant underwriting.
  • Bundle credit with merchant services such as collections, inventory procurement, reconciliation and rural distribution to improve retention.

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