London-headquartered fintech firm ClearScore has closed its India operations as the Covid-19 pandemic had an adverse impact on its business in the country.
Hrushikesh Mehta, country manager for India at the company, told TechCircle that the move will affect six people, including himself. The employees were part of the business development team and will leave the company by next month, he added.
The rest of the India team, which includes 26 employees, will continue to work as part of the customer operations team and report to the London office, he said. They will now operate as an offshore centre and provide shared services to the company’s UK and South Africa businesses, he added.
The firm, which set up operations in India in April last year, provided services through which users could check their credit scores, compare pre-approved credit offers and obtain instant loans and credit cards online.
“We had a great business run up to February, but unfortunately, the uncertainty from the pandemic and the total lockdown led us to shut our operations in India,” Mehta said.
“The company used to make money whenever a customer availed a loan using the ClearScore platform. However, with the lockdown, the company’s new loans dried up. In February, we were very optimistic. But slowly, the lockdown affected the UK, then India as well, and lenders started pulling out,” Mehta said.
The document collection and identity verification processes of the company, which claims to have serviced 16 lakh users in India, stopped as well, he said.