Former Infosycians' fintech platform indyFint has raised $2.1 million in a series A investment round led by the founding president at business process outsourcing services provider Allsec Technologies, Saravanan Adiseshan.
The Bengaluru-based startup’s co-founder and former vice president at IT giant Infosys Rajiv Kuchhal also participated in the round.
The capital will go into accelerating the platform’s product development and drive its market expansion efforts, a statement from the startup said.
It has launched its small-ticket loans marketplace as it looks to offer a risk buffer for the lending ecosystem in the country.
The virtual banking platform is a lending marketplace that lets lenders directly offer short-term loans to merchants, employees and students. The company uses an algorithm to analyze payments history, along with alternative data sources for originating loans, it claimed.
It is also planning to develop a proprietary machine-learning lending algorithm for credit scoring on the back of the transactions of small business entrepreneurs.
“With the unorganised lending being upwards of $130 billion a year in India, there needs to be concerted effort to provide timely and affordable credit to millions of users,” Paddy Padmanabhan, chairman and co-founder said in the statement.
The company is well-poised to reach a growth of 10X by the end of 2020, according to Adiseshan. indyFint was founded by Padmanabhan and Kuchhal in October this year.
Padmanabhan was the chief architect of a core banking product, Finacle, at Infosys.
Two other lending-based fintech platforms made news this week.
China’s Xiaomi rolled out its digital lending solution Mi Credit in India, a platform that claims to have disbursed loans of over 28 crores in its November pilot.
Bengaluru-based micro-lender for salaried individuals Kaarva for salaried individuals has raised an undisclosed sum in a funding round from angel network Lead Angels, venture capital firm Better Capital and Indian entrepreneurs.