Credy, a digital lending platform has raised $1.4 million from Y Combinator, Khosla Ventures, Vy Capital and HNIs in a seed funding round.
The startup will deploy the proceeds towards improving the product technology and increase loan book. It will also use the funds to scale up its operations and hire more talent.
Founded in 2017 by Pratish Gandhi, Abash Anand, and Harshit Vaishnav, Credy offer personal loans at reasonable rates with an interest range from 10 percent to 12 percent per year. Besides this, it also offers school fees financing.
For availing a loan at credy, a user needs to sign up and upload the Aadhaar details only. It claims to approve the loans within the period of 24 hours. It also charges 2 per cent processing fees to consumers on an approved transaction.
Credy claims to have an automated in-house customisable loan management system (LMS), and a strong track record of risk management.
The Bengaluru-based startup aims to provide loans to people with no credit history as most of the fintech companies ignore customers without credit history and focus on salaried people mostly.
The company competes with Lendingkart, InCred, Creditmantari, KrazyBee amongst others.
Recently, another fintech firm Lendingkart had raised $87 million in equity funding, led by Singapore’s Fullerton Financial Holdings (FFH) in February, this year. The firm has so far raised a total funding (equity and debt) of $173 million.
According to the Reserve Bank of India (RBI), NBFC loans have grown at 16.6 per cent, compared to 8.8 per cent in the banking sector in 2017.
The RBI’s Financial Stability Report (December 2016) showed a 33.1 per cent increase in loans and advances given by deposit-taking NBFCs and a 12.5 per cent increase in advances given by the non-deposit-taking NBFCs.
The funding news was first reported by Inc42.