Aditya Birla Capital To Invest Rs 100 Cr In ABCD App, Aims to Double Its Customer Base- Check Details (image source: Today Technology Market ResearchDigital)
Aditya Birla Group is making a substantial investment of Rs 100 crore in a new app, aiming to nearly double its customer base within three years and align with the projected growth in India’s financial services sector. Group chairman Kumar Mangalam Birla expressed confidence in Aditya Birla Capital‘s potential at the app launch event.
Aditya Birla Capital aims to add 30 million customers to its existing base of 35 million over the next three years. Birla anticipates a compounded annual growth rate (CAGR) of 19-21 per cent in the financial services industry across credit, investments, and insurance over three to five years.
ABCD App
The newly launched app, named ABCD Aditya Birla Capital, falls under Aditya Birla Capital Digital Ltd, a wholly owned subsidiary of Aditya Birla Capital Ltd established in March 2023. Featuring 22 products and services, the direct-to-consumer (D2C) platform encompasses offerings from lending, insurance, and investment sectors.
Digital Footprint Expansion
Birla emphasized that the app would enhance Aditya Birla Capital’s digital presence, highlighting the company’s rapid growth within the group. Aditya Birla Capital has expanded its branch network by over 500 branches in the past two years, totaling approximately 1,500 branches nationwide, serving 35 million customers.
The app also integrates into the digital payments ecosystem, incorporating features like UPI, bill payments, and online recharges alongside other services. Birla praised India’s robust digital infrastructure, acknowledging the transformative impact of public-facing digital platforms on citizens’ lives.
Industry Trends and Competition
The move reflects broader trends in the financial services sector, with conglomerates like Godrej and Reliance aggressively expanding into non-banking financial services. Regulatory constraints prevent business houses from establishing banks, prompting them to explore alternative avenues like digital lending.
Aditya Birla Capital’s recent decision to merge Aditya Birla Finance Ltd into itself circumvents the public-listing requirement mandated by the Reserve Bank of India (RBI). The merger consolidates the group’s financial entities, enhancing financial strength and flexibility for future growth.
