OptaCredit, the alternative-lending fintech startup, announced that it has secured an initial $4 Mn credit line from DMI Finance. The credit facility will be directly imbibed in aiding the company’s present financial offerings in aiding salaried customers across India to get access to timely and transformational credit.
The company which was founded by makes use of a hybrid approach wherein as part of its core strategy to scale, it retains a certain percentage of the loan assets generated via its platform on its balance sheet as it has a lending license. Kumar stated that this was done to show the conviction to investors about how OptaCredit was investing into the idea. Apparently, the plan has come to fruition.
Speaking about the acquired credit line, S Kumar Srivatsan, founder and CEO of OptaCredit said, “DMI’s credit line is another indication of the comfort that financial institutions have on our underwriting processes and credit practices.”
“This strategic alliance with OptaCredit is in keeping with DMI’s objective of being a flexible, innovative and impactful lender in the area of personal loans. The DMI’s technology-driven underwriting and the strong balance sheet is a natural partner for OptaCredit,” stated a member of DMI’s senior management. Headquartered in Delhi, the DMI group of companies was founded in 2008 by former Citigroup Inc. executives Shivashish Chatterjee and Yuvraj Singh.
The growing aspirations of the new-to-credit and underserved customer segments combined with the government’s thrust on financial inclusion has resulted in a rapidly-increasing demand for capital by Indian households.