Cash Suvidha, an online lending platform headquartered in Delhi, announced a $2.5 million round of funding through debt financing from financial institutions and other private placements. The fintech startup plans to use the funds raised to increase the company’s loan books.
Rajesh Gupta, Founder of Cash Suvidha, said,“This capital infusion will provide the impetus for further accelerating the company’s exciting growth plans. The influx of funds will enable us to replenish our loan books and will allow us to cater to a wider range of SMEs across the country.”
SMEs and individuals particularly in Delhi NCR, Bengaluru, Pune Hyderabad, Mumbai and Rajasthan are the targeted segments for Cash Suvidha. The company is supposedly profitable and has maintained its break-even status since beginning operations.
The Delhi-based startup claims to receive 15,000 loan applications on a monthly basis and has disbursed a total of Rs. 122 crores. Moreover, it claims to have serviced over 30,000 borrowers with average ticket sizes ranging between Rs. 20,000 – Rs. 5 lakh.
In December 2017, Cash Suvidha had raised $2.7 million debt funds from six financial institutions. They have tied up with around 15 players to expand their business around India.
Currently, India is nurturing an ecosystem that makes it easier for startups to grow into big businesses and fintech startups have played a significant role in this by deploying innovative products and services that were otherwise difficult to find. The fintech software market is predicted to touch $2.4 billion by 2020 from the current $1.2 million in FY 2016.