The Indian fintech market is pegged to reach $2.4 billion by 2020 as per KPMG and NASSCOM report. In this space, the recent development is that an online lending platform Cash Suvidha has secured $1 million in Pre-Series A round of funding led by Initia Holdings, Viin Agarwal and others.
In 2016, the Delhi-based fintech startup was founded by Anoop Garg and Rajesh Gupta. The startup offers credit facilities to SMEs and MSMEs in India which help them fulfil their basic requirements of working capital and other needs. The company is currently facilitating its loan services in Pune, Hyderabad, Bengaluru, Mumbai, and Delhi-NCR.
The company claims to have disbursed loans worth Rs.130 crore till date. The company further claims that they receive about 15000 applications every month. The company clears the amount within 2 working days with an interest charge of 19-28 per cent depending on the borrowers profile. The company check borrowers credibility via its software Suvidha Social Score and lend money is the money band of Rs.20,000 and Rs.5,00,000.
In February, the lending platform also raised $2.5 million debt from multiple financial institutions. The startup Cash Suvidha has secured $5.2 million debt funding since its inception.
In this month, another online lending platform Avail Finance has secured $17 million funding from venture capital fund Matrix Partners, others in part equity and part debt.