Digital credit platform PaySense has raised $18 million in its series B round of funding led by PayU. The Mumbai-based fintech startup also saw participation from other existing investors Jungle Ventures and Nexus Venture Partners.
PayU alone has invested around $11.5 million in the round. With the fresh funding, PaySense aims to tap into the emerging middle class of India. Besides, it is also looking to hire more people to strengthen its tech and data analytics team.
Unlike other startups, PaySense took only 1 year to raise another round. In May last year, it had raised $5.3 million in its Series-A round, led by Jungle Ventures with Naspers Group and Nexus Venture Partners.
The startup had earlier raised $2.3 million from Nexus Venture Partners and angel investors in 2015.
Founded by Ranganathan and Sayali Karanjkar, PaySense offers individuals, such as working professionals, credit options ranging from Rs 5,000 to Rs 2 lakh, and does the credit scoring as well as the documentation processes by leveraging India Stack.
The startup, however, does not lend from its own book and relies on non-banking finance company India Infoline (lending partner) to process the loans.
It offers a wide array of customised credit products for e-commerce purchases, family vacations, home renovations or a medical emergency. Available on Android app or website, PaySense EMI offering can be used to make any purchase, offline or online, instantaneously by putting it on an affordable EMI plan.
PaySense claims to hit Rs 50 crore monthly disbursement rate and it is targeting to double it within the next few months.
EarlySalary, IndiaLends, MoneyTap, Qbera, among others are some notable startups operating in this segment.
The development was reported by ET.