Delhi-based Millennial Card Technologies Pvt. Ltd, which operates digital credit card provider Olly Credit, has raised an undisclosed amount of funding led by Jade Value, the investment arm of Chinese unicorn CashBUS, and India’s Lead Angels Network, reported VC Circle.
Before Olly Credit, Jade Value had recently participated in USD 1 million pre-series A funding round of Mumbai-based CoutLoot, a C2C fashion re-commerce platform, April this year.
Earlier in 2017, Olly-Credit has raised an undisclosed amount from Japan’s Incubate Fund along with participation ofy Sandesh Kirkire, Former CEO of Kotak Mahindra Asset Management Company and Yogesh Chaudhary, Director, Jaipur Rugs.
Founded in 2015 by Anand Kumar, Ashwin Bhambri and Ringaile Noq, Olly Credit offers mobile-first digital micro credit card on the VISA and Rupay networks with a dynamic credit limit of upto Rs 20,000. The company, which follows a B2B2C user-acquisition model, has collaborated with DCB Bank and targets employees of hospitality and healthcare sector with a starting salary of Rs. 11,000 to extend essential credit through micro credit-cards. Additionally, the startup is also in the process of adding non-banking finance companies as lending partners going ahead.
With this round of funding, the startup intends to utilize a part of capital to issue expense cards for students at the Maharana Pratap Group of Institutions. It has also tied up with over 40 corporate entities to offer the micro-credit card to employees including ShopKirana and Big Brewsky.
Besides India, the startup has come full-circle in Egypt extending the product offering to the youth market here and its been well received by the Egyptian student audience.
According to the startup’s Linkedin page, “India’s working class population is in dire need of a credit product that is a purchasing utility for their day-to-day expenses and essential needs. Most individuals feel the crunch in the last quarter of every month and require small denomination credit to buy groceries, pay bills and other essential expenses.”
“India is today has transcended to be the most innovative financial services market and the mobile wallet industry (mostly PayTM) revolutionized the payments and transactions space. Now its time for the CONSUMER CREDIT revolution and we (at Olly) have ambitions to be the BEST in this domain.”
In a statement to VCCircle.com, Ashwin Bhambri said, “We will be increasing our user base and will address the Tier 2 and 3 markets with this round of capital. We start with a credit limit of Rs 5,000 which can go up to Rs 20,000. The users have to have a bank account in order to repay the loan through the app.”
Speaking on the investment,Johan Uddman, general manager at Jade Value Fintech, said, “We were impressed by the founders and the landing space in India excites us. We will be working closely with Olly Credit and help them build on a state-of-the-art digital underwriting system.”
JadeValue is a Fintech Investor & Incubator located in the heart of the China’s financial center in Shanghai, Lujiazui. It provide promising Fintech and InsurTech startups with the capital as well as network. JadeValue invests between $150 000 to $750 000 for equity in Fintech and Insurtech startups, mainly in Seed to Pre-A stage.
Companies especially startup ventures are increasing focussing their strategy towards digital credit cards targeting huge population of middle-class and youngsters in India. In May this year, Mumbai-based fintech startup ePayLater and IDFC Bank together launched instant digital credit to individuals transacting online and offline, using BHIM UPI using ePayLater’s ‘Buy Now, Pay Later’ thereby aiding small businesses and merchants alike.
Prior to this, in January, IndusInd Bank and Dynamics Inc. together launched India`s first battery-powered, interactive payment cards. It was announced at the 2018 Consumer Electronics Show (“CES”).