Bengaluru-based Datasigns Technologies, which operates lending platform Shubh Loans, has received a non-banking financial company (NBFC) license from the Reserve Bank of India.
The company says it will implement NBFC compliant frameworks and governance processes, according to a statement.
The NBFC license news comes days after the company raised $4.8 million through Series A round led by Mumbai-based Omidyar Network India.
“Our customers have a lot to benefit from the new status given by RBI. The NBFC certification is a shot in the arm that will us to serve more under-served segments, enable co-lending with our partners, and also help in optimising our borrowing rates,” said Monish Anand, chief executive officer and founder, Shubh Loans.
Founded in 2016 by Anand Barua, Monish Anand, Mudit Tyagi, Oriol Mirosa, Rahul Sekar and Tushar Patel, Datasigns claims that it uses traditional and non-traditional data to compute people's credit scores.
The company says it wants to democratise credit for millions of borrowers who are not part of the formal credit system. Shubh Loans' app is available in six languages — English. Hindi, Marathi, Kannada, Tamil and Telugu.
Other key players in the lending space include Bankbazaar, ofBusiness, InCred and LendingKart.
Last year in August, it had raised $4.2 million from venture capital firm Saama Capital along with three existing investors.