IndiaLends, a three-year-old fintech startup, has raised $10 million in a Series B round led by APCI Investment Managers and Indian venture capital firm Ganesh Ventures, reported the Economic Times. IndiaLends is an online marketplace for financial services like personal loans and credit cards, as well as credit scoring and analytics.
The latest round of funding comes about 18 months after the start-up raised $4 million in a Series A round (in 2016), which was led by American Express Ventures, the venture capital arm of American Express Co. AmEx Ventures, along with the existing investors which include venture capital firm DSG Consumer Partners and AdvantEdge Partners also participated in the round, which closed last week.
ACPI Investment Managers is a London-based asset management firm founded by former Goldman Sachs Partner Alok Oberoi. The firm invests up to $100 million across sectors. Ganesh Ventures, set up by former Cyber Carrier partner Jessica Wong, is an India-focused Chinese venture capital firm. Cyber Carrier was an investor in the previous funding rounding in 2016.
“RBI data on sectoral deployment of bank credit in FY18 reflects the tremendous growth potential of personal loans. We will shortly be launching new products such as an app-based line of credit and point-of-sale loans to meet the needs of our customers”, said Gaurav Chopra, founder, IndiaLends told ET.
IndiaLends has partnered with over 50 banks and non-banking financial institutions, including HDFC Bank, ICICI Bank, SBI, RBL Bank, IIFL and others. It claims to have disbursed loans worth an estimated Rs 500 crore and over 2 lakh credit cards. In 2017, it partnered with IDFC Bank to enable first-time borrowers without a credit history to avail of loans. Its competitors include other online financial marketplaces like PaisaBazaar and Loancircle, as well as banks. PaisaBazaar’s parent company, PolicyBazaar raised $200 million in June from Softbank’s Vision Fund, catapulting it into the unicorn club.
Founded in 2015, IndiaLends began with a bridge investment of $1 million. It counts DSG Consumer Partners, Siddharth Parekh of Paragon Partners and Gautham Radhakrishnan of Tata Opportunities Fund among its early investors. In December 2016, the company had raised $4 million from existing investors.