The funding will be used to scale up its product, technology, and data analytics. It will also be used to build a loan portfolio for small businesses.
Post the investment, GrowX Ventures’ MD Ashish Taneja will join Ziploan’s board of directors.
Founded in September 2015 by Kshitij Puri and Shalabh Singhal, the startup offers short-term loans to Medium and Small and Medium Enterprises (MSMEs), without any collateral. It uses a proprietary credit scoring software called Zipscore.
Talking about the funding, Kshitij Puri, co-founder, ZipLoan said, “This is a segment, which has found it difficult to get credit from other financial institutions given the poor cost-benefit tradeoff with respect to sourcing and underwriting small loans. We are leveraging technology and a wide variety of non-traditional data sources to quickly evaluate credit worthiness and disburse loans in a cost-effective manner.”
Zipscore 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 INR 1 Lakh to INR 3 Lakhs for a time period of 6-24 months.