Delhi-based online lending platform ZipLoan, which lends to small proprietorship businesses, has secured Rs 20 crore in an equity fundraising, led by Matrix Partners. The funding round also saw participation from its existing investors Waterbridge Ventures and Whiteboard Capital.
The startup will deploy the latest proceeds towards the expansion of its area of operation and enhance its technology platform.
Incorporated in 2015 by Kshitij Puri and Shalabh Singhal, ZipLoan is a technology-enabled lending platform that provides loans to small businesses. The startup offers loans of Rs 1 lakh to Rs 3 lakh over a period of 6-24 months. It has attained a run rate of around 50 to 60 loans per month with a monthly disbursement of around Rs. 2.5 crores.
The average interest rate for the lender hovers around 20% per year with 0.5% of non-performing loans.
“We were operational in Delhi and started business recently in Indore. We plan to expand to other tier-II cities over the next one year and build a Rs.200-crore loan book within that time,” said Puri, co-founder of ZipLoan, reported ET.
“We have disbursed around 350 loans as of now, with the total amount given out being Rs. 10 crore which is growing at the rate of 25% per month now,” he added.
The company had raised a pre-Series-A of Rs. 4 crores in April 2017. In August last year, it had raised Rs. 2 crores from Growx Ventures in a seed round.
The online lending segment has seen a lot of activity in recent months with startups targeting different segments such as small businesses, student, and salaried professionals.
Of late, CASHe, an app-only lending company raised Rs 20 crores in debt funding from IFMR Capital in its NBFC company, Bhanix Finance, and Investment. Mumbai-based P2P lending startup Lenden Club raised Rs 3.5 crore in equity investment from three major investors Venture Catalyst, Anirudh Damani, and an Indian venture capital fund.
Prior to that Chinese smartphone-maker Xiaomi Technologies and Shunwei Capital led an $8 million funding round in KrazyBee, which is primarily focused towards purchase finance.