Orios, Kalaari And 3one4 Lead $2 Mn Seed Round In MoneyOnClick

Orios, Kalaari And 3one4 Lead $2 Mn Seed Round In MoneyOnClick

SUMMARY

The startup plans to use the funds in strengthening its core technology

The funds will also enable the company to hire leadership

The startup aims to provide unsecured personal loans while keeping low default rates

Bengaluru-based lending startup MoneyOnClick has raised $2.15 Mn (INR 15 Cr) in a seed funding round led by venture capital firms Orios Venture Partners, Kalaari Capital, and 3one4 Capital.

The startup plans to use the funds to strengthen its core technology with a machine-learning based credit underwriting and risk assessment platform. The funds will also enable the company to hire leadership and operations teams.

Founded in 2018 by ex-LendingKart executives Vishal Chopra and Himanshu Gupta, MoneyOnClick aims to provide unsecured loans to the underserved customers.

The startup, which is currently in stealth mode, is using advanced ML/AI based underwriting and in-house technology platform, to provide unsecured personal loans to Tier 2 and Tier 3 customers while keeping very low default rates.

According to Inc42’s Indian Tech Startup Funding Report 2018, fintech startups raked $1.4 Bn in funding across 121 deals last year. Inc42 DataLabs noted that 2018 saw a sharp decline of 51.66% in the amount invested in fintech startups as compared to 2017, which is an indication of saturation in the Indian fintech sector, where licensing is going to be a decisive factor for VC investments in startups.

Some of the major players in the segment include Aye Finance, ZestMoney, i2iFunding, and LoanTap.

It is to be noted that Indian retail lending is expected to touch $1.3 Tn by 2025 and unsecured personal loans are expected to be around $200 Bn. The next generation of fintech startups has been focused on changing the course of loans in the country, by bringing their services to an untapped, underserved population of India in Tier 2 and Tier 3 markets.

Earlier, talking about expectations of fintech market in 2019,  Sanjay Swamy, managing partner, Prime Venture Partners, told Inc42 that the three categories of fintech startups — marketplace, cooperation with banks, and the NBFC model — will continue to grow in the coming year as financial services are very important in India.

He added that the market is always either underserved or unserved, and since India is a huge market, there are ever-increasing solutions for newer users coming online. He emphasised that the day of one-size-fits-all is gone and that the focus is shifting to targeted solutions for micro-segments.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
UNLOCK 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
UNLOCK 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Orios, Kalaari And 3one4 Lead $2 Mn Seed Round In MoneyOnClick-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Orios, Kalaari And 3one4 Lead $2 Mn Seed Round In MoneyOnClick-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Orios, Kalaari And 3one4 Lead $2 Mn Seed Round In MoneyOnClick-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Orios, Kalaari And 3one4 Lead $2 Mn Seed Round In MoneyOnClick-Inc42 Media
Orios, Kalaari And 3one4 Lead $2 Mn Seed Round In MoneyOnClick-Inc42 Media
You’re in Good company