Gurugram-based Xtracap Fintech India, which owns and operates an invoice financing platform Bridge2Capital, has raised $1 million in an angel round from undisclosed investors.
The company will increase the product offerings on its application and expand to new geographies using the fresh funds, a statement said.
Launched in October 2018 by Delhi School of Economics alumnus Mohammed Riaz, the platform’s mainstay business is to help small businesses get loans to purchase goods. For example, a retail shopkeeper can place an order with a wholesaler using the app, while a financier will settle the retailer’s dues to the wholesaler based on the invoice.
It offers loans in the Rs 50,000-Rs 5 lakh range, with a credit period of 45 days and a daily repayment schedule. Bridge2Capital claims that it has managed invoice financing of Rs 70 crore for customers in Rajasthan, Punjab and Telangana.
The company, which has seen 30,000 registration since inception, looks to onboard 20 lakh retailers by 2028, the statement said. It plans to launch additional digital solutions, such as payments, order management, logistics, insurance and financial services, along with an accounting platform, by March 2021, it added.
At the time of inception, Xtracap raised funds from CIIE.CO-managed Bharat Inclusion Initiative. It was also part of the latter’s first batch of Financial Inclusion Lab.
The company operates in the same space as Tiger Global-backed invoice discounting app KredX. In 2019, KredX raised $26 million in a Series B funding round led by the New York-based alternative investments firm.
Fintech firms continue to be favoured by investors. Earlier this week, Khatabook raised $60 million in a Series B funding round led by Facebook co-founder Eduardo Saverin’s B Capital with Rocketship.vc and Unilever Ventures, as well as returning investors.
CreditMantri Finserve raised $800,000 from returning investors, including venture capital firms IDG Ventures, Elevar Equity and impact investor Accion, while Lendingkart raised $42.2 million in a growth round.