Kaleidofin Private Limited, India’s first neobank for the informal sector customer, today announced it closed an INR 360 million Series A round led by Oikocredit, an impact investor with four decades of experience in financial inclusion. Existing investors Flourish, a Silicon Valley-based venture firm backing financial health solutions globally, and Omidyar Network India, an investment firm focused on social impact doubled down on their investments in the previous round. Previous funders who participated in the round include Blume Ventures, angel investor Prof. Shlomo Ben-Haim, and Bharat Inclusion Seed Fund, which doubled its stake during this raise. Unitus Capital acted as an exclusive financial advisor to transaction.

“At Kaleidofin, we have reimagined the way financial services are designed and accessed by the lower income groups. Our solutions take into account the financial roadblocks and vulnerability that these segments, such as volatile income streams and limited understanding of the fine print in financial products, “ said Sucharita Mukherjee, Kaleidofin CEO and cofounder. “Our deep ‘tech with touch’ model ensures our financial services are accessible through a trusted channel at an extremely low-cost. We are encouraged by the early wins we have had thus far. Funds raised in this round will help us strengthen our technology backend and respond to growth opportunities.”

Founded in 2017 by Sucharita Mukherjee and Puneet Gupta, Kaleidofin provides curated, goal-based financial solutions to customers in the underbanked segments using proven financial planning and wealth management principles. For each customer, Kaleidofin begins with understanding the financial goals of the household, its main sources of financial vulnerability, preferences, and tolerance toward financial risk. It creates individual “personas” of households through multiple sources of information, such as the demographic profile, income sources, asset ownership, among others, to tailor specific financial solutions for its customers.

A typical solution offered by Kaleidofin for its customers comprises of a combination of savings, investment, credit, and insurance products—all items focused on creating financial resiliency and helping people to take the first step on a financial health journey. The goal-linked financial solution approach ensures no cognitive burden, otherwise required in financial planning.

Kaleidofin is Oikocredit’s first equity investment in the fintech sector in India.

“India is witnessing a transformational change in the way financial services are available and accessed, especially in the underbanked sector. With Kaleidofin as our first equity investment in the Indian fintech sector, we want to promote and be part of the responsible offering of savings and insurance products to the low-income segments of the population. We are confident of the social impact that technology can make in improving access to formal financial services and Kaleidofin team’s understanding of the customer’s requirements. We look forward to working with them,” said Anirudh Sarda, Equity Officer, Oikocredit.

Flourish, the global fund backing impact fintech, which spun out of Omidyar Network earlier this year, also renewed support to Kaleidofin in this round.

“Financial services are a mean to an end. They are supposed to act as tools helping people achieve their life goals and improve their lives, but that has not been the norm,” said Anuradha Ramachandran, director at Flourish, who leads the company’s investments in India. “Kaleidofin’s approach to understanding the consumer, matching their needs with affordable, best-in-class solutions, and guiding them through the decision-making process is a complete reset in this space—one that has been long needed in India. We are excited to continue to support Kaleidofin on their journey to helping Indians build economic resiliency and achieve financial health.“

Amol Warange, Director, Omidyar Network India said, “A vast majority of the Indian population, over 600 million, does not have reliable access to financial services. While there is progress in reaching this customer segment for services such as credit, the full suite of banking services is yet to reach this customer base. Kaleidofin’s unique goal-based solutions can have a positive and meaningful long-term impact on the lives of their customers, who are new to the formal financial sector. As the focus of financial service providers moves from financial access to consumer financial health, Kaleidofin is at the forefront of this revolution.”

In less than two years of operations, Kaleidofin has over 50,000 customers spread across 10 states in India. It has nearly 30 network partners which include MFIs, corporates, and NGOs. Kaleidofin was selected to showcase its innovation model that addresses SDGs through digital financing, at United Nations General Assembly, Special Task Force Event.

Awards - Young Global Leader 2019 (WEF); Women in Fintech Award- Fintegrate 2019; Women Entrepreneur Award 2019 - IFTA

Oikocredit is a social impact investor and worldwide cooperative. Oikocredit has over 40 years’ experience funding organisations active in financial inclusion, agriculture and renewable energy. Oikocredit’s loans, equity investments and capacity building aim to enable people on low incomes in Africa, Asia and Latin America to sustainably improve their living standards. Oikocredit finances over 670 partners, with total outstanding capital of over € 1 billion (at 30 September 2019).

Flourish is an evergreen, early-stage venture fund investing globally in entrepreneurs whose innovations help people achieve financial health and prosperity. Spun out of Omidyar Network in 2019 with an existing portfolio of $200 million, Flourish received a new commitment of $300 million from Pam and Pierre Omidyar, the founder of eBay. Flourish invests in a number of themes in fintech, insurtech, regtech and other technologies, as well as supports nonprofit organizations, that empower people and help foster a fair, more inclusive economy. Flourish is managed by a global team with offices in Silicon Valley, Washington DC, London, and India. For more information visit www.flourishventures.com or join our community through Twitter, LinkedIn, Instagram, https://medium.com/@flourishventures.

Omidyar Network India invests in bold entrepreneurs who help create a meaningful life for every Indian, especially the hundreds of millions of Indians in low-income and lower-middle-income populations, ranging from the poorest among us to the existing middle class. To drive empowerment and social impact at scale, we work with entrepreneurs in the private, nonprofit and public sectors, who are tackling India’s hardest and most chronic problems. We make equity investments in early stage enterprises and provide grants to nonprofits in the areas of Digital Identity, Education, Emerging Tech, Financial Inclusion, Governance & Citizen Engagement, and Property Rights. Omidyar Network India is part of The Omidyar Group, a diverse collection of companies, organizations and initiatives, supported by philanthropists Pam and Pierre Omidyar, founder of eBay.
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