I can think of these negative points about the business:
Though Bajaj Fin had invested in Big Data & Analytics to process retail loans in 5 mins, but for future growth, they need to acquire new customers. Previously most new customer acquisition was via offline mode(Vijay Sales/Chroma). Lot of competition is there in online mode. Big Players like amazon, paytm & Flipkart are also giving 0% EMI in online mode.
The new online market place called Bajaj Finserv Market. I can’t think of any moat as why a customer will shop from there instead of Amazon/Flipkart.
they have also become very aggressive in offering health care loans. for instance, their executives have been chasing patients in maternity homes for the past few years.
I was just browsing the play store to see how Bajaj Finserv Wallet app is faring. Most of the recent customer ratings have been very critical of the app. Overall customer satisfaction at this stage seems to be low. Hopefully, Bajaj can wriggle out of this mess soon!
Results look exceptionally well and market didn’t like it and gave a 7% cut? was the market expecting that for the time being its the peak profits they can do?
