Mumbai-based fin-tech firm DigiLend Analytics & Technology Pvt Ltd has raised nearly Rs 2 crore ($311,939) from two non-banking financial services companies, filings with the Registrar of Companies show.
Mumbai-based InCred Finance and Temasek-owned Fullerton India Credit Company Ltd have made the investment, the filings indicate.
In an interaction with VCCircle earlier this month, InCred founder Bhupinder Singh said his firm has invested in a few startups and has picked a 10-15% stake in return. Last year, InCred acquired peer-to-peer lending platform Instapaisa after investing in the startup.
Founder and chief executive of the startup Hemang Dattani confirmed the funding made by the two NBFCs to VCCircle.
DigiLend will use the funds to pilot its product in the personal loan segment, Dattani said.
DigiLend enables individuals to avail of unsecured personal loans for education, travel, holidays, wedding, home improvement, debt consolidation, emergency needs, etc. The firm provides personal loans up to Rs 5 lakh with an annual percentage rate of charge ranging from 12-30% and for a period of six to 36 months.
Dattani founded DigiLend in 2016, but began the firm’s lending operations in April this year. He has previously worked at Standard Chartered Bank and Capital One.
DigiLend operates on a ‘lending-as-a-service’ (LAAS) model and claims to provide an end-to-end solution that includes customer acquisition, credit evaluation, risk analytics, customer on boarding, loan management post booking and collections. It has also partnered with some banks and NBFCs in India.
The fin-tech space in India garnered much traction with many players in payments, lending, insurance and personal finance. The sector is also seeing a lot of investment activity. A recent VCCircle analysis showed that 25 fin-tech startups had raised funding in 2017 alone.
Recent investment activity in the lending space includes Bengaluru-based Billionloans Financial Services, which in July this year raised $1 million (around Rs 7 crore) in seed funding from Reliance Corporate Advisory Services Ltd, a wholly owned subsidiary of Reliance Capital Ltd.
In June, Delhi-based digital lending platform Stashfin raised $5 million (Rs 32.2 crore) in pre-Series A funding from the Kirloskar Group’s venture capital arm Snow Leopard Ventures, Singapore-based Alto Partners, GrowX Ventures, and a clutch of angel investors.
In the same month, Ahmedabad- and Bangalore-based Lendingkart, an online lending platform for small and medium enterprises, raised Rs 50 crore ($7.8 million) in debt from Yes Bank.
Around the same time, online peer-to-peer lending platform LoanMeet secured seed funding from a clutch of investors, including Chinese entrepreneurs.
Other startups that raised funds in the lending space include LoanTap, Innoviti, Fincash, MoneyTap, Loan Frame, and Ftcash.