The amount raised is in debt and equity funding. Dholakia Ventures led the Pre-Series A funding
Pocketfly offers credit services to students and young professionals, underserved by the banking industry
The fintech startup will use the funds to expand its product portfolio and scale up its disbursement
Bengaluru-based fintech startup Pocketly, backed by 100X.VC, has raised $3 Mn in a Pre-Series A funding round. According to the lending platform, the raised fund is a mix of debt and equity, with $2 Mn in debt and $1 Mn in equity.
The funding round was led by Dholakia Ventures. Besides, angel investors Kunal Shah of CRED, Apurva Parekh, ED of Pidilite; Siddharth Somaiya, founder and CEO of Organic Riot and Aaryaman Vir Shah, cofounder of Prophetic Ventures also participated in the round.
While sharing plans for the future, Navdeesh Ahuja, founder of Pocketly, said, “Pocketly in its current form provides credit to students and young professionals in India through our credit line product, but going forward we are exploring multiple options to meet the various demands of our users in the form of card or BNPL.”
“We are sure that this fundraise will give us fuel to continue on our growth trajectory and help us build better products and give superior experience to our users,” he added.
Ninad Karpe, partner, 100X.VC, said, “At 100X.VC, we are excited to partner with Pocketly and fuel their journey of empowering the youngest population in the world.”
What is Pocketly?
Pocketly offers a line of credit solutions through its platform, targeting students and young professionals at the beginning of their credit journeys. It gives a credit line to college-goers via its mobile app. It also charges interest on every loan extended through its credit line over and above the usual interest charged by lenders.
Founded in 2019 by Navdeesh Ahuja, Pocketly has since grown to serve more than 100K borrowers, out of a total user base of 700K.
Right now, the startup has targets to expand its scale of disbursement from Rs. 2.5 Bn to Rs. 10 Bn within the next 12 months. Further, it will also look to expand its product range by including BNPL services alongside its usual credit offerings.
To achieve the same, the startup will use the funds to expand its team and partner with multiple Non-Banking Financial Companies (NBFCs) to make that happen, said Pocketly.
The Indian Fintech Landscape
In 2021, the country’s fintech startups raised around $8 Bn across 280 funding deals, a record high in both cases, with the average investment ticket size at $33 Mn. Among the larger fintech sector, lending tech and digital payments bagged the most venture capital inflow last year, accounting for 68% of the total funding and 44% of the total deal count.
India’s overall fintech market opportunity will reach $1.3 Tn by 2025, growing at a CAGR of 31% during 2021-2025.
As was the case with capital inflow, the lending tech will lead all the subsectors within fintech, accounting for 47%, or $616 Bn of the total market opportunity. Insurtech and digital payments will likely follow, at 26% ($339 Bn) and 16% ($208 Bn), respectively.
The BNPL market is currently the hottest space within the fintech market, with the total BNPL market expected to reach $43.3 Bn by 2025, experiencing 11x growth within five years, per Inc42 analysis.
Yesterday, Singapore-based fintech startup Volopay raised $29 Mn in a Series A funding round led by the Winklevoss twins and has plans to make a foray in India soon.
Also, Bengaluru-based fintech startup Perfios raised close to $70 Mn in a funding round from its existing investors Warburg Pincus and Bessemer Venture Partners.