CASHe, an app-only lending platform, has raised a $3.8 million series A round of funding from an investor group led by Mathew Cyriac. The funding will further increase CASHe’s scale of business. Mathew Cyriac, who quit as senior managing director and partner at private equity firm Blackstone Group, is starting his own fund to invest in companies.
Additionally, the company has an in-principle approval from Kotak Mahindra Bank for a credit line to take care of its lending book. The company is targeting to achieve 75 crores of monthly loan disbursals within the next 12 months.
Cyriac will be joining the board of Aeries Financial Technologies (which runs CASHe) and Pulak Ghosh, a data scientist and professor of Quantitative Analysis at IIM Bangalore has been appointed as an independent director
CASHe, up until now, was funded by Aries Financial’s chairman V Raman Kumar through his personal and group company resources. He had earlier invested Rs 42 crore in his personal capacity in CASHe.
The app provides immediate short-term personal loans to young professionals based on their social profile, merit and earning potential using a proprietary algorithm. It has its own credit scoring test called The Social Loan Quotient (SLQ), which determines a user’s credit-worthiness by using multiple unique data points.
The company says CASHe is completely automated and requires no personal intervention or physical documentation. It claims the average time taken for a loan to be disbursed is about 8 minutes, subject to proper submission of all documents. CASHe’s target audience is young working professionals in the age group of 23-35 years and offers loans ranging from Rs 5,000 to Rs 1,00,000 payable over 15,30 and 90 days.
It adds that it is disbursing loans worth Rs 1 crore per day and has more than 125,00app downloads on Google Play. It launched the iPhone app launched in December 2016. Over 2,000 app downloads on app store.