Finomena, a Bangalore-based startup which provides a credit history using alternate data points, has secured an undisclosed amount of funding from Matrix Partners. Other investors in the round included Kaushal Aggarwal, MD and Co-Founder of Avendus and Harshvardhan Chamria from Magma Fincorp Limited along with other entrepreneurs and angels.
Finomena says that it uses proprietary algorithms to determine credit-worthiness of borrowers such as college students or young working professionals.Though the company does not mention what alternate data points it uses for this (mobile recharges? telecom bills? late payments etc? ). The company focuses on users who want to purchase high end phones, laptops and other consumer electronics online by opting for installment or financing options. They can use Finomena’s app or website to apply for a loan to purchase a product online.
The company claims that it takes three minutes to fill a loan application online and 24 hours for the applicant to know if his or her loan has been approved. Times of India points out that Finomena charges a commission over the interest earned on the loaned amount from banks and NBFCs. They also get a commission from online portals when sales are generated through their platform.
Finomena was founded by Abhishek Garg and Riddhi Mittal. Garg is an electrical engineer from IIT Delhi and was formerly an management at the Boston Consulting Group (BCG). Mittal is a graduate from Stanford and worked previously with Facebook and Microsoft.
Other recent investments by Matrix Partners
– In October 2015, online food ordering app TinyOwl raised ~$7.6 million (Rs 50 crore) in funding led by Sequoia Capital and Matrix Partners.
– In the same month, payment gateway Razorpay raised $9 million in a series A round of funding led by Tiger Global and participation from Matrix Partners.
– In June 2015, Belong, a company which helps organisations hire talent, raised Series A funding worth $5 million from Matrix Partners, with participation from Blume Ventures, Snapdeal co-founders Kunal Bahl and Rohit Bansal, RedBus co-founder Phanindra Sama, and Sierra Atlantic founder Raju Reddy among others.
– In March 2015, Gurgaon based LimeRoad, an online shopping platform for women’s fashion and home furnishings, raised Series C funding worth Rs 185 crore led by Tiger Global, with participation from Matrix Partners and Lightspeed Ventures.
– In February last year, healthcare technology startup Practo raised $30 million in a round of funding led by existing investor Sequoia Capital and with participation from Matrix Partners