Reliance Capital arm invests $1 million in alternative digital lending startup Billionloans

Reliance Corporate Advisory Services, an arm of Reliance Capital, today announces that it has invested $1 million in alternative digital lending startup Billionloans Financial Services Pvt Ltd. The investment is in line with RCap’s strategy to expand its consumer lending business across platforms.

This is the second major startup investment by Reliance Capital, after Paytm, in which the firm had invested about $1.5 Mn and sold out to Alibaba Group for $41.2 Mn this year.

Reliance Capital arm invests  million in alternative digital lending startup Billionloans

Commenting on the investment, Anmol Ambani Executive Director of Reliance Capital said, “Technology and innovation in financial services are going to play a big part in bridging the gap between aspirations of large number of Indians wanting access to credit on the one hand and the ability of companies to build efficient and scalable lending models on the other.”

Mr. V Balakrishnan, the ex-Member of the Board of Infosys, Chairman of Exfinity Venture Fund and one of the early investors in the company, is currently the Chairman of Billionloans.

Billionloans is a technology-enabled financial services company that provides flexible and affordable lending options to individuals and small businesses that have so far found it difficult to access loans from the traditional banking system.

The company was founded in 2017 by Dr. Rangan Varadan, a serial entrepreneur who has also co-founded MicroGraam, an online micro-lending platform and other professionals with long experience in the finance and IT industry.

“Our goal is to fundamentally disrupt how borrowers are sourced and appraised using technology in the quickest possible manner. This will lead to a dramatic change in access, both for borrowers with thin credit histories and for lenders looking to expand beyond their traditional customer bases,” Billionloans Chairman Balakrishnan said.

Billionloans plans to initially focus on providing educational loans, affordable housing loans and personal loans to individuals and business loans to SMEs. The company is expected to facilitate loans of around Rs. 2,000 crores across multiple products and lenders in next three years.

The deal was led and structured by Reliance Wealth Management (the wealth management arm of Reliance Capital).