Online lending platform Biz2Credit Inc. has raised $52 million (about Rs 360.25 crore at current exchange rates) in a Series B funding round led by private equity firm WestBridge Capital.
Biz2Credit said in a statement it will use the fresh funding to expand its marketplace lending business as well as support the expansion of Biz2X – its digital lending platform for banks and financial institutions – through partnerships with global entities.
The company’s Biz2X platform is live in four markets around the world, and the company is aiming to expand its presence further.
Chief executive and co-founder Rohit Arora said the platform would differentiate itself because of its omni-channel focus on helping banks to scale up their digital lending business. Co-founder and president Ramit Arora said the investment would allow Biz2Credit to recruit talent and maintain its position as “the industry leader and innovator in online lending technology”.
Separately, WestBridge managing director Sumir Chadha said the PE firm was confident about its investment in the company because of its success in partnering with institutions across the world.
Founded in 2007 by Rohit Arora and Ramit Arora, the company provides small and medium-sized businesses with flexible and transparent lending solutions. The company’s Series A round was led by Nexus Venture Partners.
The amount of funds Biz2Credit is raising is significantly more than what Indian startups across sectors typically mop up in Series B rounds.
In April, for instance, digital lending startup ZestMoney raised $20 million in its Series B round of funding led by venture capital firm Quona Capital.
In February, online lending platform ZipLoan secured $12.5 million in a Series B round led by venture capital and growth-equity investment firm SAIF Partners.
The PE firm usually focusses on publicly listed companies, though it has also invested in a number of privately held companies.
In March, WestBridge bet on Hindustan Foods, which makes PepsiCo Inc’s Kurkure snacks. The homegrown PE firm bought an 11.54% stake in Hindustan Foods from the consumer-focussed VC firm Sixth Sense Ventures that was founded by Nikhil Vora.
Last month, it sold its entire 3.4% stake in a Delhi-based footwear maker on the open market, likely earning nearly two-fold return on its investment.