Online financial services marketplace BankBazaar has recently raised Rs 375 crore or $60 million in its Series C round of funding led by Amazon with participation from Fidelity Growth Partners and Mousse Partners. Existing investors Sequoia Capital and Wa
Online financial services marketplace BankBazaar has recently raised Rs 375 crore or $60 million in its Series C round of funding led by Amazon with participation from Fidelity Growth Partners and Mousse Partners. Existing investors Sequoia Capital and Walden International also participated in the round, which has seen the company divest a minority stake.
This is the second investment by Amazon in India after it picked up minority stake in gift card technology and retail firm QwikCilver Solutions last year. The Seattle-based e-tailer set up a strategic investment team last year under Abhijeet Muzumdar, who was a venture capital investor at Bessemer in India.
"Amazon is an innovative company that perceives consumer needs and innovates on their behalf. As the digital economy in India develops, Amazon will be an important investor in the robust and rapid growth of BankBazaar," said Adhil Shetty, co-founder & CEO of BankBazaar.
BankBazaar will use the capital for "technology integration, hiring and strengthening partner relationships" besides "marketing and branding efforts." The company is also aggressively investing in its mobile application platform.
BankBazaar is also investing heavily on its mobile App. The App delivers a more customized, stable and seamless experience to the consumer. The BankBazaar App, available on both the Android & iOS platforms, not only helps consumers get financial products with ease, but also educates them and helps them manage their finances better.
The company initially started out in 2008 with a focus on loans, which still constitutes a chunk of the business. But BankBazaar has also expanded into deposits and insurance. It has signed up more than 23 bank partners. Bankbazaar said that online loan applications across home, personal and auto loans are growing by 90%, compared to 15% growth in offline.
"With the rapidly evolving online consumer segment across categories, we have seen great demand for this platform. We are currently looking to expand the category as we reinvest all earnings in growing the business intelligently," added Shetty.
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