Vijay Shekhar Sharma led Paytm has made an undisclosed amount of investment in Mumbai-based fintech startup CreditMate. CreditMate is an online lending platform focussed on the used two-wheeler market in India. The announcement came in soon after Paytm partnered with ICICI Bank to launch a short-term, interest-free credit line, enabling instant loans to customers.
Founded in 2016 by Jonathan Bill and Aditya Singh, CreditMate claims to provide affordable loans for second-hand two-wheelers It has a technology-based credit engine, which uses data-driven algorithms that allows assessing customers’ viability for loans quickly, as compared to the traditional lending solutions. It has a dealer network of over 150 across Mumbai and Gujarat.
Earlier in October 2016, CreditMate had raised $500K from VC fund India Quotient. The raised funds will help the startup in expanding its operations, distribution, lending partnerships, and technology.
Paytm aims to utilise CreditMate’s proprietary credit and asset valuation technology.
“We are constantly innovating to provide access to financial services and lending specifically targeted at the large majority of Indians who do not have access to such products,” Paytm Senior Vice President and CFO Madhur Deora said. He also added, “Over time, we will use Creditmate’s platforms to make credit available both offline and online to our users.”
Post the massive $1.4 Bn funding from SoftBank, Paytm is currently valued at $9 Bn. In order to bolster its position amidst new entrants such as Hike, WhatsApp, Google, etc, in the digital payment space, Paytm is trying to expand into different verticals, hence eyeing strategic investments and consolidations.