Hecta is a debt recovery platform for secured loan defaults of banks and FIs. 6% is the average ratio of Non-Performing Assets aggregating to $90Bn (INR 7.4 Lakhs Crores) with just the scheduled banks of RBI. There are 2,000 more lending institutions such as NBFCs, Housing Finance Companies, Cooperative Banks, Industrial Finance Corporations who have another $30Bn (INR 2.5 Lakhs Crores) NPAs. The historical aggregate recovery has been less than ~21% by value, which Hecta aims to increase by 50%.
The key collateral accepted by lenders is real estate constituting residential, industrial and commercial properties including schools and hospitals. Lenders sell these properties of borrowers to recover loan amounts under the SARFAESI or IBBI. These are sold at usually 15% to 30% discount from market price and is the key demand driver.
In their very first full financial year, they crossed 400+ bids across 30 cities, crossed $250K revenue from 46 distinct banks and FIs. Their MVP was just discovery by aggregating the heterogenous properties across locations and categories. Hecta now aspires to solve the discovery, due-diligence, lending and transaction support as part of the transaction value chain. They underwent training to become certified Debt Recovery Agents as per the RBI’s guidelines.
IIM Lucknow’s incubation support is aimed at solving the due-diligence and lending, that have been the two biggest pain points. Banks provide limited information and sell on As-is Where-is, Whatever-is There-is, and on No recourse basis. This scares the potential buyers as they are high value transactions, which need to be decided in two weeks. Integration with state’s registration departments, courts and using Artificial intelligence will automate the due-diligence, provide the confidence and increase conversion.
The Founder Sridhar Samudrala says “IIM Lucknow incubator’s support will bring attention to this subject and exploring association with RBI Innovation Hub, Indian Banks Association, Insolvency and Bankruptcy Board of India, Stamp and Registration departments. IIM Lucknow’s partnership with SIDBI and Venture Capitalists will help raise funds from aligned investors”.
About the Hecta
At Hecta, we are a full-service marketplace dedicated to the marketing and sale of repossessed properties from Bank and Financial Institution auctions. Our platform streamlines the entire process of discovery, due diligence, lending, and transactions through advanced technology. By leveraging our unique matching algorithm, we help end buyers find properties that perfectly suit their needs. We address the challenges of heterogenous inventory and geographically fragmented listings by using innovative technology to bridge the gap between supply and demand, ensuring a seamless experience for both buyers and sellers.
