Bhaskar Kode’s Bon Credit: Empowering Gig Workers with Financial Inclusion

In the dynamic landscape of the gig economy, Bhaskar Kode, the founder of Bon Credit, is on a mission to redefine financial inclusion for gig workers in India. Through a unique approach, Bon Credit is addressing the working capital challenges faced by gig economy workers, providing them with the financial support needed to navigate the uncertainties of their profession.

The inspiration for Bon Credit struck Kode during his conversations with ride-hailing drivers, like those using Uber, during his daily commute. Recognizing a common challenge among gig workers—managing expenses between pay cycles—Kode envisioned a solution that could bridge this financial gap. In 2018, he took the plunge and founded Bon Credit with the vision of making credit easily accessible for gig workers, simplifying the process as seamlessly as acquiring a SIM card.

Bon Credit operates through a B2B2C model, collaborating with Non-Banking Financial Companies (NBFCs) and partnering with marketplace platforms such as Swiggy, Uber, and Dunzo. The platform leverages a proprietary algorithm to assess a gig worker’s risk profile, determining a safe and reasonable credit limit. Bon Credit’s unique offering is a Mastercard-enabled credit card tailored for gig workers, equipped with a specific credit limit.

Gig workers can utilize the Bon credit card for work-related expenses, covering essential needs like fuel, tolls, and parking charges. Kode emphasizes the platform’s focus on identifying and facilitating the top 10 expenses for each profession, ensuring the card is used exclusively for work-related purposes.

For gig workers like Shiv Shivakumar, who faced challenges in managing dues on a daily basis, Bon Credit became a game-changer. The platform gradually increased Shivakumar’s credit limit based on his credit behavior, fostering financial discipline. Additionally, Bon Credit automatically debits interest payments from the worker’s earnings, streamlining the repayment process. Bon Credit stands out in the lending space by incorporating “high-frequency auction technology.” This technology connects NBFCs with customers in a matter of milliseconds, resembling Google’s auction system for advertisers. Kode explains that as Bon adds more lenders, interest rates are expected to decrease, making loans more affordable for borrowers. This innovative approach sets Bon Credit apart as a pioneer in the lending landscape.

Despite challenges in the NBFC sector, Bon Credit has garnered support from around 10 sub-₹100 crore firms. The platform’s meticulous control over microcredit, expenditure tracking, and automatic interest deductions from workers’ earnings have contributed to its credibility. Kode mentions ongoing discussions with larger banks and NBFCs, indicating the potential for further growth and collaboration.

Bon Credit, having raised a seed round of ₹7.8 crore ($1.1 million), is scaling its impact. Currently servicing 30,000 customers across six cities, including Bengaluru, NCR, and Mumbai, the platform has processed 600,000 micro loans. Kode envisions Bon Credit as a comprehensive benefits provider for gig workers, extending its services to micro-insurance schemes and micro-savings in the next 12 months.

The long-term vision for Bon Credit involves becoming a full-stack benefits provider for gig workers. Kode’s ambition is to address the neglected needs of this segment comprehensively. As gig workers emerge as one of the fastest-growing segments globally and in India, Bon Credit’s innovative approach and commitment to financial inclusion position it as a transformative force in supporting the gig economy’s backbone.