BankBazaar.com, an online financial marketplace has raised $60 million in Series C funding round led by Amazon. Other investors like Fidelity Growth Partners and Mousse Partners and existing investors Sequoia Capital and Walden International took part in the funding round.
Founded in 2008, BankBazaar is one of India’s first neutral online marketplaces that provides consumers with access to customized rate quotes on loans, credit cards or personal finance products like that of insurance policies, bank loans and credit card offers. These services can be availed through web and mobile platforms. Twenty-three top financial institutions of India has partnered with BankBazaar.
This round of funding is considered to the biggest funding in the online financial products market. Last April, PolicyBazaar, online policy aggregator had raised $40 million in Series D which is the second highest so far. This investment in BankBazaar is Amazon’s second investment in the e-commerce space in India. The company plans to use the new funds to expand and widen its product category and position the company as the one stop shop for all financial decisions. The funds will be used for technology integration, hiring and strengthening partner relationships and to improve the end-to-end customer experience to grow in the online financial services category as market leader.
Adil Shetty, founder and CEO of BankBazaar said, “Amazon is an innovative company that perceives consumer needs and innovates on their behalf. We share the same belief and we are committed to enabling an easy, convenient and trustworthy purchase experience for consumers focusing on financial products be it loans, credit cards or any other personal finance products. We are encouraged by Amazon’s faith in us.” He also added, “As the digital economy in India develops, Amazon will be an important investor in the robust and rapid growth of BankBazaar.” Shetty was a former Deloitte Touche Tomahatsu executive who co-founded the company with two others.
To strengthen its working in the online loan and credit card market, BankBazaar is now planning to launch other personal finance products to help consumers ‘clinch best deals.’ The startup is widening its portfolio offerings and working to provide more options to its consumer. the startup is investing heavily on the mobile app to be available on Android and iOS platforms. Since the last round of funding, the business model of the startup has evolved. The reason behind the major focus on the smart phone app is because more than 40% of the users connect to Bankbazaar through smartphones.
“With the rapidly evolving online consumer segment across categories, we have seen great demand for this platform. We are currently looking to expand the category as we reinvest all earnings in growing the business intelligently,” said Shetty.
Gautam Mago, managing director of Sequoia Capital said, “The company has made great strides in the last two years and become the premier consumer destination for financial products. With this fund raise, BankBazaar plans to innovate even more to provide the best and fastest experience for consumers.”