Virtual card provider startup Stashfin raises $5 mn

New Delhi based Virtual card facility provider startup Stashfin has raised $5 million in Pre Series A round. Snow Leopard Ventures, a wing of Kirloskar Group's venture capital and Singapore-based Alto Partners have led the funding round.

Other investors who also took part in the Pre Series A round are Vibhav Dhawan and Praveen Malhotra, managing partners at executive search firm Positive Moves, Avendus Capital founder Ranu Vora, commodities trading firm Trafigura's chief executive Raoul Bajaj, and senior executives from KKR.

Founded in February 2016 by Tushar Aggarwal, Stashfin is digital lending venture started by a team of former financial services professionals dedicated to disrupting traditional lending in India. The team has worked with reputed firms in Banking and Financial Services space, such as Bank of America - Merill Lynch, Citi, Deloitte, etc. in India and USA. Tushar Aggarwal previously held investing roles at Goldman Sachs and private equity firm General Atlantic in New York.

The team claims to leverage its exposure across multiple functions including technology, customer experience and process re-engineering experience to deliver best in class services and great convenience to its customers.

One of the investors in Stasfin, Vibhav Dhawan said, "Given the proliferation of global digital lending platforms and Stashfin's understanding of consumer behaviour, product development and creating a technology platform leveraging the power of machine learning augurs well to the monetisation of Big Data that Stashfin is collecting."

Customers remain at the centre of this market and they increasingly value speed, convenience and digital interactions over traditional branch visits and tellers. And Stashfin offers instant loan to provide you with the perfect financial boost in the most convenient and hassle-free manner.

The company offers loan range from Rs 10,000 to Rs 200,000 with repayment starting at 2 month with maximum tenure of 18 months and interest rate ranging from 11.99% to 59.99 % APR(Annual percentage rate). Also the company receive loan payment through EMI via electronic payment claims its website.

Chris Kolenaty, founder of Snow Leopard Ventures, said, "The core team at Stashfin has deep, relevant experience in lending, financial services, technology and in scaling companies." The fund was raised while the venture was in stealth mode, making it one of the largest early-stage funding rounds in India, company executives said.

According to a Nasscom report, the financial technology market in India is estimated at $8 billion, and expected to grow exponentially by 2020.

Image Credit: Stashfin.com