Avail Finance raises $11.5 mn from Alphawave Incubation, Matrix Partners: Reports

Avail Finance raises $11.5 mn from Alphawave Incubation, Matrix Partners: Reports
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28 Aug, 2020

Bengaluru-based Goddard Technical Solutions, which operates and owns online lending platform Avail Finance, has raised Rs 85.6 crore ($11.5 million) in a Series B funding round from Alphawave Incubation Fund and Matrix Partners, according to media reports.

Alphawave Incubation, which is managed by Falcon Edge Capital, led the round with  a Rs 57 crore ($7.7 million) investment, while returning investor Matrix Partners infused Rs 30.2 crore ($4.1 million) in the company, the reports said, citing regulatory filings.

Avail Finance reportedly made an allotment of 4,23,044 Series B cumulative convertible preference shares (CCPS) and 10 equity shares at an issue price of Rs 2,060.25 to raise the amount. Post allotment, Matrix Partners will be one of the biggest stakeholders in the startup, commanding 26.4%, while Alphawave will own 11.5% in the firm.

Email queries sent to Falcon Edge, Matrix Partners and Avail Finance did not elicit a response till the time of publishing this report.

Avail Finance last raised funds in June 2019 when Matrix Partners India led a $9 million Series A funding round in the company. 

In March 2018, Matrix India led a seed investment round in the company. Other investors who participated in the round include Binny Bansal, co-founder of Flipkart; Kunal Shah, founder of Cred; Bhavish Aggarwal and Ankit Bhati; founders of Ola; and Manish Patel, founder of Mswipe.

Founded in 2017 by Ankush Aggarwal and Tushar Mehndiratta, Avail Finance has built a neo-bank for blue-collar workers. It partners with aggregators of blue-collar workers, such as Ola, Swiggy, Ecom Express and Quess Corp, and provides financial products for such workers.

The company recently rolled out a loan programme for gig economy workers in India. Called Avail Assist, the programme looks to assist gig economy companies across ecommerce, food delivery, logistics and mobility segments by providing financial support to their on-ground contract workforce who are not eligible for employee benefits.

Other fintech startups that recently raised capital include OneScore, ZipLoan and Eduvanz