Fintech Startup Paysense Services India Pvt. Ltd, which offers personal loan to the consumer, today announced that it has raised the fresh fund of $5.3 million in series A round. The funding was led by the Singapore-based venture capital firm Jungle venture, with participations from South African business conglomerate Naspers and an existing investor Nexus Venture Partners. The startup had earlier raised the seed round of investment of $2.3 million from Nexus Venture Partners and prominent global angels in 2015.
The startup will use this fund to further improve its technology infrastructure and also plans to hire people in data science, technology, and management team in accordance to tier 2 cities expansion.
Sayali Karanjkar, Co-Founder and COO, said, “With respect to credit, India is a severely under-served market. Our research indicates that there is a rising demand for short-term flexible credit across the middle-class aspirational youth. People need ready access to short-term, flexible and quick credit solutions for a variety of needs that improve their life and satisfy their aspirations. We are building PaySense to become a trusted financial partner to our consumers, we don’t just want to serve them once, we want to become their go-to solution for all their financial needs.”
Investors are increasingly showing interest in FinTech space. Capital float, Lendingkart, ePaylater and other have received funding from the respective investors in recent months.
Commenting on the investment, Amit Anand, Founder and Managing Partner, Jungle Ventures, said, We have patiently been looking at this space in India and feel very excited to eventually partner with the PaySense team and other investors. There are going to be a few mega companies being formed in this space and the PaySense team has demonstrated great understanding and traction on various aspects required to become a category leader here.”
Co-founded by Ranganathan and Sayali in 2015, the company owns a mobile app, through which they offer personal loan of up to 1 lakhs rupees to the individual such as working professionals. The user has to fill the KYC form and select the required plan for both online or offline purchase.
PaySense has tied up with Mumbai-based IIFL to disbursed the lending amount. The company claims to have over 180,000 users and has disbursed loans worth Rs 30 crore.
Currently, the company operates in 9 major cities including Delhi-NCR, Bengaluru, and Chennai soon plans to go in tier 2 cities.