BuyBack Bazaar is a world-first fin-tech which has already started making inroads into the global pawn market, estimated to be a $3.5 trillion market growing at 5% per annum. Moreover, the loan market globally - estimated at $42.3 trillion (Source: SuperMoney, 2018) - has also grown 132% since 2012, with a jump in median values as well (Source: US Federal Reserve). This clearly highlights the growing indebtedness across the world and pressures on cashflows.
Interestingly enough, in our business vertical (Alternative Finance within Fin-tech), the composition of lenders is also rapidly changing, with Fin-tech now accounting for 30% of subprime loans issued in USA (Source: US Federal Reserve). Surprisingly enough, this massive market for collateralised credit (pawn) has remained pretty much under the radar for centuries now, which is why we feel this long-term opportunity has a lot of legs.
We also went out and did a few onshore surveys, and results from 3 of them in Dubai from Jun 2017 to Mar 2018 spanning 750 respondents earning less than USD 20,000 per annum indicate that:
1. 71% need funds to send back home, pay for medical & house rent.
2. Over 60% need loans for less than USD 820.
3. 65% need funds for less than 3 months, with
4. 70% depending on friends & family for short term loans.
5. 44% would sell their mobile phones, laptops & tablets for quick cash whilst 29% prefer to sell their jewelry.
Clearly the opportunity is not just for lower end gadgets, but for expensive items like cars, luxury watches, bulkier commodities (like steel, copper, rice), cameras, industrial machinery etc as well, so not only the range of products but also the demographic segment is wide.
There is a dire and global need for more efficient and transparent lending platforms to disrupt illegal and predatory loan sharks operating in many countries. These operators impose exorbitant compounding rates of interest that lead people into an increasing debt spiral - especially the financially vulnerable who have little or no alternatives.