Matrix Partners India, others invest in Avail Finance
Bangalore: Avail Finance, a Bengaluru-based online lending startup, has raised an undisclosed amount of funding led by Matrix Partners India and a group of individual investors, the company said in a statement on Wednesday.
In addition to Matrix Partners India, co-founders of Ola Bhavish Aggarwal and Ankit Bhati, co-founder of Flipkart Binny Bansal, founder of Freecharge Kunal Shah and founder and CEO of Mswipe Manish Patel participated in the tour.
Avail Finance has raised a total of $ 17.2 million to date, which includes debts and lines of credit from several non-bank financial institutions (NBFCs) and other investors.
According to Ankush Aggarwal, CEO of Avail Finance, the money raised through a line of credit will be used for loans, and the money collected from investors will be used to improve Avail Finance’s technological capabilities and to hire new talent. .
Founded by Ankush Aggarwal and Tushar Mehndiratta in February 2017, Avail Finance targets blue collar workers in India, who the company says are underserved by lending institutions like banks.
The market that the target company has has little or no credit card penetration and there is a lack of structured credit history to identify potential borrowers. The company said a large portion of India’s population instead resorted to credit from informal sources at high interest rates.
Aggarwal said the company is partnering with companies that employ blue-collar workers to seek out potential borrowers. To date, it has disbursed loans to around 4,000 borrowers and the average loan size is around Rs 20,000.
The start-up claims to take advantage of other forms of metrics from the companies it works with to take out loan applications. It also uses the India Stack integration to find borrowers, the company said in a statement.
India Stack is a set of open application programming interfaces (APIs) that enables governments, businesses, startups and others to deliver paperless eKYC and identify customers.
“By solving the heart of the problem by having no credit history, using cutting-edge technology, data science and artificial intelligence, we bring a new approach to an age-old problem. The huge number of people in the urban mass who are currently ignored by the formal lending sector will benefit from Avail’s solutions, “Aggarwal said in a statement.
Never miss a story! Stay connected and informed with Mint. Download our app now !!