Online Lending Platform CreditMate Secures $500K From India Quotient

Mumbai-based fintech startup CreditMate has raised $500K from VC fund India Quotient.

Founded in 2016 by Jonathan Bill and Aditya Singh, CreditMate is an online lending platform focussed on the used two-wheeler market in India. It claims to provide affordable loans for second-hand two wheelers. It works with a dealer network to provide loans to individuals and corporates currently under-serviced by traditional lenders.

It has a technology-based credit engine, which uses data-driven algorithms that allows to assess customers’ viability for loans quickly, as compared to the traditional lending solutions. Users can enter the two wheeler of their choice and their monthly income on the website and the company’s algorithm determines their monthly EMI and average loan repayment time.

Talking about the investment, Jonathan Bill, co-founder, CreditMate said, “We are targeting a blue collared workforce segment which could range from beauticians to delivery boys, retail store employees, or even housewives. It’s an easy process and the end user can take possession of their bike within two working days.”

As per an official statement, the company has partnered with more than 25 dealers in Mumbai. Users have to have a minimum salary of INR 10,000 in order to be eligible for the loan.

Earlier in April 2016,  peer-to-peer lending platform LenDenClub raised an undisclosed amount of angel investment through Venture Catalysts. In February 2016, Bengaluru-based peer to peer lending marketplace startup, Loanzen, raised an undisclosed amount of Seed funding from Tracxn Labs and angel investors, through Tracxn Syndicate.

Earlier this month, online lending platform FlexiLoans raised about $15 Mn (INR100 Cr) from Sanjay Nayar and others.

Other startups in this segment include KountMoney, Faircent.com, LoanCircle, Capzest, etc.

This development was reported by ET.