New Delhi-based Namaste Credit, an another fintech category startup has raised USD 3.8 million (~ Rs 24.70 crore) in series A round of funding from Nexus Venture Partners. Namaste credit is essentially a digital marketplace for SME loans.
The startup will use the freshly raised funds to grow its geographic footprint, enhance technology and data analytics platform and further scale its businesses. Beside, it also plans to significantly increase its channel partner program across India and further expand its technology licensing partnerships with leading lenders globally, the statement added.
Founded in 2014 by Lucas Bianchi (ex-executives at Moody’s), Gaurav Anand and Krishnan Parameswaran (ex-executive atGE), Namaste Credit claims to be India’s first online marketplace for loans. Its lender app on Android platform helps the lenders to give loan offers, accept meetings, see loan status details and much more. Over the last 12 months, disbursement volumes through Namaste Credits platform have increased over 10X with participation of over 30 institutional lenders.
“Our technology platform enables lenders to identify potential underwriting issues much faster and also prevent intentional fraud. We provide predictive analytics on banking and financial data of SMEs very efficiently, which helps lenders more accurately assess and price risk,” Anand said.
Sunstone Capital, run by ex-McKinsey and Bank of America professionals, acted as the exclusive financial adviser for this transaction.
The above development was first reported in Times of India.
Notably, fintech space continue to be the most invested segment among startups in India. According to a NASSCOM report published in November 2017 Fintech, along with 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.
Few days back Bangalore-based fintech startup SmartCoin had raised $2 million in pre-Series A funding from a top Shanghai headquartered VC fund and Accion Venture Lab. Prior to this, Cash Suvidha, a Delhi-based fintech startup, raised $1 million pre-Series A funding from Initia Holdings Ltd.
In February, 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.
Other fintech start-ups that have raised funds recently include ZipLoan, Kissht, Shubh Loans, Stashfin, LoanMeet and others.
Other lending-based startups with which Namaste Credit competes are CapitalFloat, NeoGrowth, and LendingKart.