Just a few days after fintech platform Finbucket announced its $1.87 Mn funding, Delhi-based online lending startup Cash Suvidha has raised an institutional debt of $2.7 Mn from various financial institutions.
The funds have been raised from six financial institutions and will be primarily used to facilitate further lending to Small and Medium Enterprises (SMEs). The funding will also enable the startup to bolster its personal loan products, particularly in Delhi NCR, Bangalore, Pune, Hyderabad & Mumbai. So far, the company has raised $3 Mn since its inception in 2016.
Founded in June 2016 by Rajesh Gupta, Cash Suvidha claims that it receives 15,000 loan applications per month and has disbursed a total amount of $16 Mn (INR 102 Cr) since its inception. It has reportedly tied up with over 14-15 players to expand business across India and disburse loans within 48 hours.
Commenting on the development, Cash Suvidha founder Rajesh Gupta said, “This working capital infusion will provide propulsion for further accelerating the company’s exciting growth plans. The funds so raised will be used to replenish our loan book and widen our reach across the country. We are confident that our relationship with these institutions will help us in empowering more SMEs by addressing their working capital requirements”
Numerous fintech startups have emerged in the consumers and SME loans segment. Some major fundings that took place in the online lending ecosystem this past year include FlexiLoans’ $7 Mn (INR 45 Cr) funding from undisclosed institutional investors in December 2017. Earlier in October 2017, it also raised $15.5 Mn (INR 100 Cr) through a consortium of angel investors. Prior to this in November 2017, One97 Communications invested an undisclosed amount into CreditMate, while New Delhi-based fintech startup Prest Loans also raised $570K (INR 3.7 Cr).
According to a report by Credit Suisse, the global consumer and SME loan market is expected to reach $3 Tn over the next decade, owing to government’s initiatives to provide hassle free and cashless financial transactions.