Mobile wallet firm Paytm has picked up a majority stake in Mumbai-based fintech startup CreditMate which focuses on enabling its dealer partners and financiers to distribute two-wheeler loans to customers with no formal credit history.
“We are constantly innovating to provide access to financial services and lending specifically targeted at the large majority of Indians who do not have access to such products,” Paytm senior vice president and CFO Madhur Deora said in a statement.
Following the deal, Paytm will leverage CreditMate’s proprietary credit and asset valuation technology and loan management system. However, both the company did not disclose the investment amount.
Founded in 2016 by Jonathan Bill, Ashish Doshi and Aditya Singh, CreditMate focuses on enabling its dealer partners to distribute two-wheeler loans to customers with no formal credit history. The company also helps two-wheeler owners to secure a loan against their bike.
Commenting on the development Bill, Co-Founder and CEO of CreditMate said, “We are delighted to welcome Paytm as an investor given the strong synergies in our vision. This will allow us to expand our operations, distribution, lending partnerships and technology investment to help a wider set of consumers to access and leverage this key life-enhancing asset is. Achieving this is both economically and emotionally rewarding for us.”
CreditMate works with banking, financial services companies and Non-banking Financial Companies (NBFC) such as Optimus Finance Limited and KJMC Financial Services Limited.
CreditMate assesses the customer and asset (two-wheeler) using proprietary credit and valuation engines. It works with licenced lending partners for whom it provides a credit recommendation and online access to a complete digital borrower and asset profile to enable fast and secured lending. It has a dealer network of over 150 across Mumbai and Gujarat.
In October last year, Creditmate secured $500,000 in a seed round from early-stage investment firm India Quotient.