Saturday, July 16, 2016

Milaap - Let the hands meet

Milaap is an online crowd sourcing platform to facilitate financial needs of working poor. The funds are raised on this platform for causes like access to education, clean water, energy and similar. Milaap was founded by Anoj Viswanathan, Mayukh Choudhury and Sourabh Sharma in 2010.

Milaap raises fund on two premises - Contribution (lend a loan for specific cause) or Donate for a cause. Funds raised via contribution are for causes like child education, funding agriculture activities, setting up sanitation centers, towards rural development. The contribution is not raised for any projects that has  political or religious purposes.

Visitors on Milaap portal can make donation towards social causes like human rights, medical care, rural infrastructure and women empowerment. 

Business Model 

  • Local partner: Milaap has tie up with local NGO or Microfinance institution, referred to as field partners. These partners identifies the borrowers, authenticate its profile and determines the nature of their loan requirement. 
  • Then, the borrowers profile, along with his picture and stated need is displayed on Milaap platform. 
  • Lenders (people at large) can browse the profile of different borrowers and select the one they wish to contribute to. 
  • The funds contributed or donated by lenders are aggregated by Milaap staff and regularly disbursed to its field partners, who in turn would distribute the funds designated borrowers. 
  • In case of funds given in nature of contribution, field partners will collect interest and principal repayments, as per the terms from borrowers and transfer it to Milaap. Loan are normally lend for period of 12 - 24 months. 
  • Contribution by each lender to specific cause (referred to as Campaign) is displayed on Milaap timeline. This increase the transparency in lending and borrowing framework. Also, Lenders can view quantum of funds raised for each campaign and balance requirements.

Pictorial representation based on publicly available information. Icon obtained from Board of Innovation

Revenue Model

  • Milaap charges interest in range of 5 -12% on the loan amount.
  • Field partners starting campaigns also have to pay processing fees and service ta
  • Field Partners have to pay fees based on amount raised
  • If field partner would do all campaigning work on their own, then they pay 5% for 'Do it yourself Campaign'
  • If field partner would like to take assistance of Milaap team, then they pay higher commission at 8% 'Assist.
  • To avail higher number of services from Milaap team, the field partner can opt for service 'Amplify' The fees for this services will be decided by Milaap team based on funding requirements

Lets's strech our hand, to help a unsmart but skillable hand to make it an independent hand