Credit and financial technology start-up, IndiaLends (www.indialends.com) closes US$ 1 million bridge round of investment in a deal led by existing investors - DSG Consumer Partners, Siddharth Parekh, Gautham Radhakrishnan amongst others.
This investment comes within 2 months of its previous fund-raise. IndiaLends uses proprietary underwriting algorithms to help salaried and self-employed consumers and small businesses get access to unsecured loans at fair rates. Having recorded exponential growth over the last quarter, the company now plans to utilize the investment to grow its product suite, expand operations to 7 cities, enhance technology and engage the best talent in the sector.
“Our vision is to get rid of the un-organized lending sector in the country and bring more and more people into the fold of formal channels of credit- using better underwriting techniques and technology. Through the use of technology, we have been able to facilitate higher approval rates, instantaneous decisions and quick disbursals and have seen a doubling of volumes on a monthly basis” commented Mayank Kachhwaha, Co-Founder of IndiaLends. Mayank, an alumnus of IIT Madras previously worked at Capital One solving the same problem in the western world.
IndiaLends has tied-up with close to 10 financial institutions and recently expanded its services to Mumbai and Bangalore, in addition to Delhi NCR. It processes over 300 loan requests a day offering loans between INR 50K and 15Lacs.
“On the basis of customer interaction and feedback, we have now developed new products to help more Indians achieve financial independence. The new product suite launching later this year will expand beyond loans and is based on account level-analytics” commented Gaurav Chopra, Co-Founder of IndiaLends. Gaurav, an alumnus of St. Stephen’s College, the London School of Economics and the London Business School spent 8 years working at Capital One in London before establishing IndiaLends.
The financing was led by DSG Consumer Partners, who have previously funded ventures such as Sula Wines, MSwipe, Veeba Food Services, Zipdial, Oyo Rooms and EazyDiner; and angel investors including Siddharth Parekh, Gautham Radhakrishnan and others.
Deepak Shahdadpuri, Managing Director, DSG Consumer Partners commented, “In a very short period, we have been very impressed by the traction the business has shown. Starting with 4 NBFCs, India Lends is now working with 10 NBFCs, has processed 8000 loan applications and Rs. 3croresof loans have been approved and distributed. August loan disbursal numbers were 300% of July and 400% of June numbers. This new round of funding will ensure that the company not only maintains but accelerates its pace of growth.”