Delhi-based FinTech startup Cash Suvidha, trade name of Usha Financial Services Pvt. Ltd., which extends business loans to SMEs, MSMEs, women entrepreneurs & personal loans to individuals, has raised $1 million pre-Series A funding from Initia Holdings Ltd., Vipin Agarwal, Partner in India Industrial Growth Fund and others, announced the startup in a press release.
The newly secured capital will be used to increase the loan books of the company and to further strengthen its technological infrastructure. Founded in 2016 by Mr. Rajesh Gupta, Mr. Anoop Garg and Ms. Geeta Goswami, the company provides a variety of loans and funds will be primarily used to facilitate further lending to SMEs and to cater to the loan needs of Individuals, particularly in Delhi NCR, Bangalore, Pune, Hyderabad, Mumbai, and Rajasthan.
The startup had earlier raised an institutional debt of $2.7 million from various financial institutions, in december 2017.
Cash Suvidha has been closely monitoring the business environment and helping potential MSMEs to propel by providing effective financial solutions in no time. The influx of funds will enable Cash Suvidha to replenish its loan books and will allow it to cater to a wider range of SMEs across the country. With its vision to provide easy access to credit and working capital to SMEs, 80% of its loans are targeted towards SME sector in India.
Commenting on the development, Mr. Rajesh Gupta, Founder of Cash Suvidha, said, “This capital infusion would help us in widening our horizon and in extending our best alternative lending services across geographies. We have recently started our operations in Kota and Jaipur. Our next destination is Ajmer and other parts of Rajasthan. After covering Rajasthan we will move towards Gujarat and other, parts of India.”
Cash Suvidha receives around 15,000 loan applications per month and disburses loans within two working days. Since its inception the company has raised a total debt of $5.2 million and has successfully disbursed a total amount of 152 Cr. With a successful business model and management, the company has been profitable since the beginning of its operations.
Just yesterday, Gurgaon-based fintech startup Creditas Solutions raised undisclosed amount in pre-series A funding round led by 1Crowd.
FinTech Startup Fundings in Last Few Months –
Last month, a Mumbai based fintech startup Fincash.com raised $150,000 in funding from angel investors including like Mohammed Khan (Founder of Rediffusion), Sameer Narayan (ex- Fund Manager BNP Paribas), among others. Prior to that, a Bengaluru-based fintech startup NiYO Solutions raised $13.2 million in its Series A funding from investors including Social Capital, JS Capital LLC (the family office of Jonathan Soros), and Horizons Ventures and existing investor Prime Venture Partners.
Last November, an Artificial intelligence-powered fintech startup Active.Ai raised $8.25 million in Series A funding led by Vertex Ventures, Creditease Holdings and Dream Incubator.
To recall, according to a NASSCOM report published in November 2017 Fintech and healthcare are most funded segments of startups in India, in past one year. The total number of startups in the fintech space has gone up to 360 from 275 in 2016, thus registering 31% growth in the number of startups.