Gurgaon-based StreamSource Technologies, a decentralized marketplace for loans, has raised $1 million in seed funding from Accel India, making it Accel’s first local investment in the blockchain sector.
Interestingly, StreamSource was founded in 2018 by a former Uber and an Ola executive — Mayank Tewari and Prerit Srivastava, respectively. While Mayank was General Manager of Products at Uber, Prerit was CEO of Qarth Technologies, which was aquired by Ola in 2016 and he was at Products team at Ola.
The startup will utilize the funds raised in further developing its product, while also growing its sales team in the US and hiring local resources in markets such as Australia and UK where it plans to go next. The startup also is working to expand the product bring in merchants, apart from just lenders, who will be able to sell leads to the lenders on its platform.
StreamSource, a Quorum based private blockchain platform, is a decentralized marketplace where lenders and debt buyers can initiate and settle transactions that includes buying and selling of credit approved leads and whole loan transactions.
Quorum is an enterprise-focused version of variant of the Ethereum blockchain, developed by J.P. Morgan.
Streamsource is currently working with a few mid-size lenders in the US, the names of which it did not disclose.
The company said it picked the US as it first market as the decision making for processing of unsecured loans in India is far deeper, more complex and requires manual intervention.
“The problem has been known for years, but it hasn’t been solved because traditional technologies are generally very inefficient in transactions like this where both parties do not want data to be shared but they want to collaborate,” said Prerit Srivastava, co-founder of Streamsource.
Prayank Swaroop, Principal at Accel Partners, said, “We’ve been trying to do investments in this space for the longest time, but what we found was people were artificially trying to create blockchain use cases. Here we found that this is a business need and that gave us confidence to invest in them.”
Source – Economic Times – ET Tech