FinBucket Pvt. Ltd, which runs an eponymous online marketplace for loans and investments, has raised Rs 12 crore ($1.8 million) from Delhi-based early-stage venture capital firm Impanix Capital.
The startup plans to use the funds to increase its staff strength to 200 and expand operations, FinBucket said in a statement. The funds will also be used to strengthen the technology backbone, expand its physical presence across metros and for customer acquisition efforts, it said.
A spokesperson for Finbucket said this is the company's first external funding round since inception.
“We aim to invest this money in building our technology and operational team. We will focus on the unserved segment of the market—that is, people who are not getting loans because of poor or no credit score,” said Heena Jain, co-founder of FinBucket.
The company has also onboarded RK Jain, who has more than 25 years of experience with ICICI bank, HDFC and Bajaj Finserv, among others, to shape its business strategy.
Founded in 2014 by Jain and Parit Garg, FinBucket is an online marketplace that connects customers looking for loans, financial instruments and investment options with vendors. Once the customer submits an online application, FinBucket uses a proprietary algorithm to connect the borrower with the right lender, thereby increasing the chances of loan approval.
The three-year-old startup helps customers access personal loan, home loan, business loan, credit card and mutual funds. It also plans to foray into the insurance space, including life, health and car insurance.
Jain is an alumnus of IMT Ghaziabad while Garg is a chartered accountant and previously worked with Varsha Industries, according to their LinkedIn profiles.
For Impanix Capital, FinBucket is the fourth known investment. It had earlier invested in legal services provider Legal Raasta. It has also invested in online bakery CakeCity and ed-tech startup Skillofy.
FinBucket joins a growing list of fintech startups in the lending, payments and personal finance segments that have been raising funds.
Earlier this month, digital SME lending platform FlexiLoans raised Rs 45 crore ($6.98 million) in debt.
In November, CreditMate, which operates an online lending platform for two-wheeler loans, raised an undisclosed amount from Paytm.