Bengaluru-based fintech platform, Shubh Loans has raised $4.2 Mn funding in an investment led by VC firm Saama Capital. Existing investors SRI Capital, Beenext, and Pravega Ventures, also participated in the round.
The current funding comes after a year when Shubh Loans had raised $1.6 million in pre-Series A fund from the existing investors in September 2017. Prior to that, It had raised an undisclosed amount of angel funding led by Sanjai Vohra, former managing director of JP Morgan, and V Bunty Bohra, managing director and India CEO of Goldman Sachs.
With the current fundraising, the company plans to enhance its technology and to build a data science team.
Shubh Loans is an app based lending platform launched by Anand Barua, Monish Anand, Mudit Tyagi, Rahul Sekar and Tushar Patel in 2016. It helps borrowers generate proprietary individual credit score using traditional and secondary data points, who can borrow from any of its nine banking and NBFC partners. It is available in six languages that include English, Hindi, Kannada, Telugu, Tamil and Marathi.
The Platform focuses on lower-income groups with an annual income of Rs 1.5 lakh to Rs 4.5 lakh whereas the average loan size currently hovers around Rs 68,000. It receives between 1,400-1,500 loan applications on an average per day.
“We will start disbursing loans to the self-employed segment from September. So far, we were doing it through partnerships with other startups, lending to people such as beauticians, carpenters, etc. listed as service providers on their platforms, but now we want to tap the open market,” said Anand.
Shubh Loans claims to have disbursed ₹35 crores in loans during the FY2017-18 and plans to cross ₹150 crores in lending for the coming financial year 2018-19. It also plans to apply for an NBFC license from RBI, to spruce up its lending.
In the consumer lending space, Shubh Loans competes with the likes of Faircent.com, LoanCircle, KountMoney, Capzest, and Loanzen, among others.