SmartCoin (Olyv) Revolutionizes Micro-Lending for India's Next Billion with AI-Driven Alternative Data
In India’s tier-2 and tier-3 cities, there exists a "missing middle"—a segment of over 300 million people who are gainfully employed but remain invisible to traditional banks. These are the delivery boys, security guards, and small shopkeepers who have no credit history but high aspirations. Rohit Garg, CEO of SmartCoin (now Olyv), is using the power of the smartphone to bring this segment into the formal financial fold. By replacing physical bank branches with AI algorithms, SmartCoin has scaled to serve over 7 million users across every corner of India.
Rohit Garg’s background reads like a masterclass in global finance: IIT Kanpur, IIM Ahmedabad, and high-octane roles at Morgan Stanley, Deutsche Bank, and Nomura. Yet, while living in London, Rohit realized that the biggest financial problem to solve wasn't in global markets—it was back home. In 2016, just months away from British citizenship, he returned to India to co-found SmartCoin with his friends Amit Chandel, Vinay Singh, and Jayant Upadhyay.
The Auto Rickshaw Insight
While researching in Mumbai, Rohit spoke to an auto-rickshaw driver who needed ₹1,000 for fuel to start his day. Lacking savings, the driver borrowed from a local lender at 10% interest per day. He would repay ₹1,100 by evening, effectively losing a massive chunk of his daily earnings to predatory lending. This inefficiency convinced Rohit that the system didn't need incremental change—it needed a data-driven revolution.
The Problem: The "No-File" Trap
Traditional banks and NBFCs rely on three pillars for lending: physical verification, income documentation (pay slips), and bureau scores (CIBIL). For the next billion users, these pillars are non-existent:
- Physical Hurdles: Sending an agent to a village in Arunachal Pradesh for a ₹5,000 loan is economically impossible for a bank.
- Documentation Gaps: Semi-organized workers earn well but lack the formal paperwork required by traditional systems.
- The Chicken and Egg Trap: Without a loan, you can't build a credit history; without a history, you can't get a loan.
"Less than 5% of people in India have access to unsecured credit," Rohit notes. "Everyone beyond the top tier is still struggling for easy access to funds."
The Solution: The Sachetization of Finance
Just as FMCG companies revolutionized rural India by selling shampoo in small sachets, SmartCoin has "sachetized" credit. By making the entire lifecycle 100% digital and automated, they have reduced operational costs to a point where a ₹2,000 or ₹5,000 loan is not just possible—it’s sustainable.
How AI Replaces the Bank Manager
- Smartphone Micro-Signals: Instead of visiting a home, the AI uses GPS data to verify residency and stability.
- Financial SMS Analysis: With user consent, the platform analyzes transaction SMS alerts (UPI, ATM, Salary) to recreate a cash flow profile without needing a bank statement.
- Behavioral Assessment: The AI analyzes how a user interacts with their device—aspirational apps vs. entertainment—to judge willingness to repay.
- Vernacular Interface: Talking to the customer in their language lowers the barrier to entry and builds trust.
Technical Moat: Alternative Data & Machine Learning
SmartCoin’s secret sauce is its ability to find "thick signals" in "thin files." While a bank sees a "no-file" customer as a risk, SmartCoin’s algorithms see a pattern of regular UPI payments, consistent fuel purchases, and responsible digital behavior.
"This data is not humanly possible to analyze," Rohit explains. "There are thousands of micro-signals. Our pedigree as computer science graduates from IITs helped us approach this in a scientific, patient manner." This focus on data has allowed them to weed out fraudsters while supporting genuine users who were hit hard during the pandemic.
SmartCoin (Olyv) Scale of Impact
- 7 Million+ Users: Served across the length and breadth of India.
- 18,000+ Pin Codes: Reaching 98% of India's districts.
- 1,000+ Job Profiles: From beauticians and electricians to CRPF personnel and hotel owners.
- 200+ Team Members: A mission-driven team based in Bangalore.
The Future: From SmartCoin to Olyv
The recent rebranding to Olyv marks a transition from a lending platform to a full-stack financial wellness app. By expanding into digital gold savings, insurance, and credit health management, Rohit and his team are building a comprehensive financial ecosystem for the underserved.
"We are sitting at an inflection point," Rohit believes. "Over the next 5 to 10 years, you will see a lot more business models evolving because the ecosystem is now aligned for complete digital businesses."
Lessons for Entrepreneurs
Rohit Garg’s journey from Kota to London and back to the villages of India offers vital lessons for founders:
1. Commitment to the Problem
Don't enter a startup thinking you'll "get out" in two or three years. You must be committed to the long haul. "Entrepreneurship is a combination of freedom and the potential to disrupt sectors in a way not possible in a traditional setup."
2. The Power of Perseverance
Growth brings problems, and lack of growth brings different problems. You must be ready to deal with both. In credit, vintage and seasoning matter more than overnight speed.
3. Believe in the Data
When senior bankers told Rohit he could never recover loans from people 1,000 kilometers away without meeting them, he leaned into his algorithms. "You have to take a leap of faith, but back it with scientific rigor."
SmartCoin (Olyv) is proving that financial inclusion is not just a social goal—it’s a massive business opportunity. By betting on the aspirations of the "missing middle," Rohit Garg is helping build a more equitable and digital Bharat.
Founder's Tip for the Long Haul
Make sure you are really committed to the problem you are solving. The ecosystem is finally ready for world-class digital products from India—now is the best time to be a builder.
About the Guest
Rohit Garg is the Co-founder and CEO of Olyv (formerly SmartCoin). A computer science graduate from IIT Kanpur and an MBA from IIM Ahmedabad, he has over a decade of experience in global financial markets with firms like Morgan Stanley and Nomura. Under his leadership, Olyv has become one of India’s leading fintech platforms, leveraging AI to provide financial services to millions of underserved Indians. He is a passionate advocate for using technology to drive social impact and financial democratization.
Olyv (formerly SmartCoin) is a Bangalore-based fintech company that provides instant, automated financial services to the "next billion users" in India. By utilizing alternative data and machine learning, Olyv offers personal loans, digital savings, and credit management to segments traditionally overlooked by the banking sector.