Mumbai-based fintech startup CapitaWorld Platform Pvt. Ltd has raised an undisclosed amount through convertible equity from high-net-worth individuals, corporate honchos and investors from Hong Kong and the Middle East.
The investors who participated in the latest round include former chief executive of Indian Banks’ Association Mohan Tanksale, Swift India CEO Kiran Shetty, Madhu Silica’s managing director Darshak Shah and former JP Morgan executive Mandar Mhatre, the startup said in a statement.
The startup will use the funds to expand its geographical reach as well as to onboard and assist banks and NBFCs to go digital in their lending business, it said.
"Getting investments from HNIs globally shows the potential this platform has to scale up not only in India but also elsewhere," said Jinand Shah, founder of CapitaWorld.
"The lending market is moving towards the digital phase as the time and costs involved in the physical process are high. A few players have developed a lead model where post basic data things happen physically. CapitaWorld manages the complete digital process for customers and bankers till disbursement," Shah said.
“The platform brings a lot of efficiency to the system and at the same time expand the lending market by making it simple and digital for the stakeholders,” Tanksale said.
The company, which was incubated by a regulatory body in Abu Dhabi, was established in March 2015. It has 60 employees and is present in major cities in India and UAE.
A lot of startups in the financial technology segment have raised funding of late. In October, online lending platform ZipLoan, which is operated by Delhi-based Blue Jay Finlease Ltd, raised Rs 20 crore (around $3 million) in a funding round led by Matrix Partners India.
In September, Datasigns Technologies Pvt. Ltd, which runs online lending platform Shubh Loans, raised $1.5 million (about Rs 10 crore) in a pre-Series A round from SRI Capital, Japan’s BeeNext and Pravega Ventures.
At least 25 fin-tech startups had raised funding between January and May this year, according to a VCCircle analysis. Several startups have emerged in the online lending segment over the past two years, and most of them are targeting small and medium-sized businesses.
Recent deals in the lending segment include KNAB Finance raising a little over Rs 2.5 crore in two rounds from InCred and more than a dozen individual investors. InCred has also invested in fin-tech startup DigiLend Analytics & Technology Pvt. Ltd.
Bengaluru-based Billionloans Financial Services raised $1 million in seed funding from Reliance Corporate Advisory Services Ltd, a wholly owned subsidiary of Reliance Capital Ltd, in July.
In June, Delhi-based digital lending platform Stashfin raised $5 million in a pre-Series A funding from Kirloskar Group’s venture capital arm Snow Leopard Ventures, Singapore-based Alto Partners, GrowX Ventures and a clutch of angel investors. The same month, Ahmedabad- and Bengaluru-based Lendingkart 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 have raised funds in the lending space include LoanTap, Innoviti, Fincash, MoneyTap, Loan Frame and Ftcash.