Bengaluru-based micro-lending startup SmartCoin has raised $2 million in a pre-series A funding round from Chinese VC fund and Accion Venture Lab.
The round also saw participation from existing investors, including early-stage investor Unicorn India Ventures and ISME ACE, a Mumbai-based fin-tech accelerator.
“We invested in SmartCoin last year as we saw an immense potential in the business. Over the course of the year, we have realized the ability of the team to scale its operations rapidly given the right ammunition. Thus, being able to raise a top dollar from two of the world’s largest markets is a testament to our belief in the team,” said Archana Priyadarshini, Partner, Unicorn India Ventures.
SmartCoin was founded in 2016 by IIT and IIM alumni Rohit Garg, Amit Chandel, Vinay Kumar Singh and Jayant Upadhyay. The company lends small to mid-size ticket loans to mobile users through credit scores created using machine learning algorithms.
“We have seen a sharp uptick in growth over the past year and have successfully disbursed over 50,000 micro loans. With this round, we expect to grow the momentum and further scale 10X over the next six–12 months. Having specialists as investors, who are passionate about micro-lending, on board will only help us cover more ground not only in India but globally too,” Rohit Garg, co-founder and CEO, SmartCoin said.
Micro-lending startup SmartCoin is already working with several partners for disbursing loans and has achieved strong organic growth. The company further plans to utilize funds for upgrading its technology platform and grow the team as it continues its expansion plans and looks to acquire more customers.
The company raised an undisclosed amount of seed funding from Mumbai-based Unicorn India Ventures and other investors in April 2017.
Several fin-tech start-ups in the lending space have raised funds in the past few months. Lending platform Ziploan in October raised $3 million in funding led by Matrix Partners. Another education technology start-up Eduvanz Financing Pvt Ltd. that provides loans to students for skill development also raised funds from Blinc Advisors, a venture capital fund in February this year.