Online loan matchmaker Finzy has raised $1.3 million (Rs 8.4 crore) in the first round of pre-Series A funding, a company statement said.
The Bengaluru-based company expects to close the second round of funding within the next 60 days.
The fin-tech firm plans to invest the funds in technology and in building the team.
A significant amount of the funding will also be used for expansion across Tier-I cities to take Finzy to a wider audience.
Finzy connects borrowers looking for quick personal loans at low-interest rates with those eyeing returns on their money. The platform offers borrowers flexibility in pre-payments without additional charges. It also claims to provide consistent 16%-plus returns to lenders.
Operated by Bridge Fintech Solutions Private Limited, Finzy was founded in 2016 by Amit More, Abhinandan Sangam, Vishwas Dixit, and Apoorv Gawde.
“We have maintained a focused customer-centric approach while designing our products and processes, resulting in zero default in the first 10 months of operations,” said More.
In October 2017, the central bank said no non-banking institution other than a company could undertake peer-to-peer lending (as seen on Finzy's platform) without a registration certificate. Besides, every company seeking registration should have a net-owned fund of not less than Rs 2 crore, or as specified by the central bank.
Others in the space
In December 2017, Delhi-based Fairassets Technologies India Pvt. Ltd, which operates online lending platform Faircent, raised Rs 25 crore ($4 million) in a Series B round led by new investor Incofin Investment Management, a Belgium-based social impact firm.
In October 2017, online lending platform LenDen Club raised $500,000 from an undisclosed Mumbai-based venture capital firm.
In May 2017, loan matchmaker startup i-lend secured an undisclosed amount in a pre-Series A round from seed and incubator firm 50K Ventures.