Micro-lender platform Cash Suvidha has secured $1 million from Initia Holdings, Vipin Agarwal, and others in a pre-Series A round. The Delhi-based fintech company offers business loans to SMEs, MSMEs, women entrepreneurs and personal loans to individuals.
In February, it had raised $2.5 million from multiple financial institutions in a debt financing round. So far, Cash Suvidha has raised a total debt of $5.2 million.
The company claims to have disbursed a total amount of Rs 152 crore to borrowers with an influx of about 15000 loan applications every month. The Rajesh Gupta led company promises to offer loans within two working days, and levies interest rate in the range of 19 to 28 per cent depending upon the profile of the borrower.
Cash Suvidha claims to have disbursed loans to more than 30,000 borrowers, with an average loan size ranging from Rs 20k to Rs 5 lakh, claims its website.
The platform aspires to facilitate further lending to small and medium enterprises (SMEs) and personal loans in cities including Delhi (NCR), Bengaluru, Pune, Hyderabad, and Mumbai.
Cash Suvidha competes with a volley of lenders including Lendingkart, InCred, Capital Float, Indifi Technologies, CreditMantri among several others. Last month, Lendingkart raised $87 million in equity funding, led by Singapore’s Fullerton Financial Holdings (FFH).
With a boom in fintech sector in India, technology-driven lending companies tend to solve credit access issue to millions of SMEs. The opportunity is large and opened for many. Besides crunch of financing enablers for small businesses, consumer-focused lending platforms are also experiencing a decent adoption.
The Funding news was sourced from ET