SanKash is a startup that aims to provide financing solutions to Indian travelers who struggle to afford their ideal vacations. A study commissioned by Grant Thorton revealed that 40% of travelers in India abandon their vacation plans due to a lack of funds. The company offers a “Travel Now Pay Later” option to customers and acts as a one-stop shop for financing needs for travel merchants.
The company has registered more than 6,000 travel merchants, including Thomas Cook, SOTC, Veena World, Balmer Lawrie, among others, and has seven banks and NBFC partners. This startup started out as a bootstrapped company, but was able to secure Rs 4.5 crore in seed funding and another Rs 3 crore pre-Series A round in 2022.
SanKash aims to solve the fragmented and complex Indian self-sponsored travel market valued at $42 billion. Approximately 90% of the market is conducted offline, and there are limited immediate financing options. The company provides an integrated solution with multiple lenders to travel merchants, thereby reducing the time it takes to find financiers.
The startup offers a completely online journey for borrowers, real-time approval, and disbursals. MakemyTrip Inc. is taking a unique approach in the industry by leveraging an API-first model to build partnerships with IndiGo, Radisson Hotels, and Cordelia cruises. While TripMoney, provided by MakemyTrip is seen as a rival service provider, SanKash offers its services to all travelers and tourists, not just those looking for ETB portfolio services.
The company offers a straightforward process for travelers to apply for a loan of up to Rs 10 lakh. The traveler needs to fill in basic know-your-customer information and upload their income documents. SanKash’s in-house logic engine curates the travel and underwriting information and determines the best NBFC for the loan. The entire process is done online, and there is no need for physical verification or office visits.
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SanKash operates in 338 cities in India and targets all merchants in the travel, aviation, and hospitality industry. The company plans to expand its merchant base to 15,000 by 2025 and has set its sights on integrating new online partnerships, starting with the aviation sector, where it is going live with Indigo. The company’s revenue run rate is $2.1 million, and it plans to increase it to $29 million in the next two years. SanKash charges a processing fee ranging from 1%-2% of the loan amount from the traveler and a Merchant Discount Rate of 3% from the merchant. The company also takes a loan origination commission from the NBFC of 1%-2%. SanKash has an offline network through its partnership with Travel Boutique Online (TBO) and employs 60 people.
