In one of the largest series A funding rounds by an Indian startup, Bangalore-based fintech startup OKCredit, has raised $15.5 million in funding round led by Tiger Global along with participation from Morningside Venture Capital, Lightspeed India Partners, Venture Highway and the startup’s existing backer Y Combinator also contributed to the round.
Tiger Global has reportedly invested $10 million of total $15 million funding of OKCredit.
Part of Y Combinator’s summer 2018 batch, OKCredit offers mobile based solution for small business and shop owners and their customers to enable recording of credit/payment transactions digitally.
Founded in 2017, by IIT Kanpur graduates – Harsh Pokharna, Gaurav Kumar and Aditya Prasad, OKCredit has raised more than $17 million in total so far.
OkCredit provides merchants with a simple and reliable means of keeping credit and payments records for their business carried out on credit basis. It digitizes their transactions and records payment reducing the burden of maintaining and accounting paper account books. Accoding to the startup’s website, “The ability to provide an on-demand visibility of the merchant’s record to the customers is possible for the first time.”
It has a mobile app which helps automate all transactions of retailers with their customers and wholesalers. Merchants can use OkCredit’s app to track buyers’ purchases and when payments are due. They can also use the app to send payment reminders.
The startup, which faces competition from players like PhonePe and BharatPe, is planning to expand its merchant base and create teams across verticals such as product, technology and digital banking. OkCredit aims to replicate this solution to digitise all book-keeping between the wholesaler and the retailer, which will help automate all credit, stock taking, and amount due
The startup is currently catering to 13 lakh merchants, of which around 9 lakh use the app once a month, while 4 lakh merchants use it once a week.
According to co-founder/ CEO of OkCredit, Harsh Pokharna,”Without any feet on the street, we have spread across more than 1,000 locations across India, relying on word-of-mouth and some digital marketing.”
“As many as 97% of the 60 million micro businesses in the country have no digital tools. “Our mobile-first solutions, simplicity of language will help create a loyal merchant base,” he added in a statement to The Economic Times.
Scott Shleifer, Partner, Tiger Global said “The market for cloud enabled software for India’s merchants is young and growing rapidly. We believe OkCredit is a strong market leader.”
Source – ET Tech