IndiaLends, a fin-tech startup, has raised an undisclosed amount of funding in its pre-Series A funding round led by DSG Consumer Partners and Siddharth Parikh along with few angel investors.
Launched in March this year by Gaurav Chopra and Mayank Kachhwaha, the startup IndiaLends is an online marketplace that put together consumers looking for low rate loans with institutional lenders looking for higher risk-adjusted returns. Available on web and mobile, it uses a proprietary algorithm that sums and analyses information from the many data sources like the credit bureau, the application form, social networks and many more. Potential borrowers and are shortlisted with the help of combination analytics and judgmental oversight. After care analyzing, the borrowers are put in contact with relevant lenders for further proceedings.
With the new funds, the company intends to widen its operations, improve technology and analytics capabilities and acquire new talent. It also plans to start operations in Mumbai and Bangalore. “We are seeing an explosive growth in demand and will use these funds to enhance our technology and hire quality talent. This will enable us to grow our platform, enhance end-user experience and allow our clients to generate more value from the online services we offer,” said Kachhwala.
Deepak Shahdadpuri, managing director of DSG Consumer Partners said, “This (Fin-tech) will reduce the cost, provide a better mechanism to price risk, reduce time to assess credit and provide credit for the first time to many individuals who would not otherwise be able to access the formal credit channels.”
IndiaLends will compete with the CreditMantri that recently secured $2.5 million from IDG Ventures and others, for a similar platform. It considers the credit health of the client and helps to make better borrowing decisions and check if the person is eligible for a loan from leading banks or not.
In less than four months of starting its operations in Delhi, IndiaLends now serves a large number of borrowers and lending institutions and has helped assess risk for more than 1500 customers.