Delhi-based SME lending platform, ZipLoan, has raised $3 Mn Series A funding from Matrix Partners India. The round also saw the participation of the fintech startup’s existing investors, including WaterBridge Ventures, Whiteboard Capital and former Capital18 MD, Sarbvir Singh.
The company will utilise the newly-secured capital for geographical expansion in non-metro cities. The funds will also enable the SME lending platform to increase its loan book size.
Matrix Partners India MD Vikram Vaidyanathan said, “With over 40 Mn SMEs, SME-lending is a large opportunity, but with tough execution challenges. We believe a cautious, technology-led approach can bring down underwriting and sourcing costs enough to serve the SMEs at smaller ticket sizes.”
Kshitij Puri On How ZipLoan Reached $1.5 Mn Disbursal In Two Years
Founded in September 2015 by Kshitij Puri and Shalabh Singhal, ZipLoan offers collateral free short-term loans to Medium and Small and Medium Enterprises (MSMEs). The startup currently has its presence in New Delhi/NCR and Indore.
The SME lending company claims to reduce credit assessment time to a few minutes as compared to traditional financial institutions. It also offers small credit options to entrepreneurs after evaluating credit security. The credit size offered by ZipLoan ranges from $1,534 (INR 1 Lakh) to $7,670 (INR 5 Lakhs) for a time period of 6-24 months.
In November 2016, the fintech startup reached the $153K Mn (INR 1 Cr) mark in terms of loan disbursal. So far, the fintech startup has issued loans to the tune of $1.5 Mn (INR 10 Cr) across 350 loans, with the average ticket size being $4,602 (INR 3 Lakh).