Mumbai based technology and data science company PaySense has raised $ 18 million in its series B round of funding led by PayU, the round also saw participation of its other existing investors Jungle Ventures and Nexus Venture Partners. PayU which had first participated in the Series A round, pumped in $11.5 million this time.
PaySense works in the space of digital lending where it processes loans for customers who might not have a credit card and would need instant credit for a specific purpose. The startup however does not lend from its own book and relies on non banking finance company India Infoline, its lending partner to process the loans.
PaySense is leveraging the IndiaStack platform very well to create additional capabilities beyond those of the traditional credit bureaus to generate strong underwriting of retail loans, said Siddhartha Jajodia, global business head for credit at PayU. With these investments we intend to tap into the emerging middle class of India and provide them with easy access to formal credit.
This is PayUs second major investment in the digital lending space in India, the other one being in Zest Money a consumer check out financing startup. PayU also invested recently in Peter Thiel backed German startup Kreditech.
Naspers backed PayU which is a global digital payments player, has been betting majorly in the lending business to expand its scope of operations.
Though payments is a major business for us globally, credit is also emerging as a critical component of our business, said Jajodia.
PaySense which has hit the Rs 50 crore monthly disbursement rate already is targeting to double it within the next few months. Further the company is also trying to hire more people to strengthen its tech and data analytics team.
We are constantly innovating to serve this population using net new ways of assessing these customers through our instant credit decisioning models. We enable access to a wide array of customized credit products that serve their lifes needs - whether its aspirational e-commerce purchases, family vacations, home renovations or a medical emergency," said Prashanth Ranganathan, chief executive officer at PaySense,
Founded by Ranganathan and Sayali Karanjkar, PaySense had first raised $2.3 million in 2015 from Nexus Venture Partners and few angle investors. In 2017, the company had raised its Series A round of $5.3 million led by Jungle Ventures.