DSG Consumer Partners puts US$1M more into IndiaLends
The capital will be used to grow product suite, expand operations to seven cities, enhance technology and hiring
IndiaLends, a Delhi-based credit underwriting and analytics platform for unsecured consumer lending, has received US$1 million in bridge funding from Singapore-based DSG Consumer Partners. Angel investors including private equity investor Siddharth Parekh and Gautham Radhakrishnan also co-invested.
This round comes a couple of months after the startup nabbed an undisclosed amount in initial investment led by DSG.
The fresh capital will be used to grow its product suite, expand operations to seven cities, enhance technology and hiring.
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“Our vision is to get rid of the unorganised lending sector in the country and bring more and more people into the fold of formal channels of credit- using better underwriting techniques and technology. Through the use of technology, we have been able to facilitate higher approval rates, instantaneous decisions and quick
disbursals and have seen a doubling of volumes on a monthly basis,” said Mayank Kachhwaha, Co-founder of IndiaLends.
The venture was founded by ex-Capital One professionals Gaurav Chopra and Kachhwaha with a vision to improve credit scoring techniques in the country and help more people get access to organised credit at better interest rates. IndiaLends captures and analyses a variety of relevant data points that help in assessing a borrower’s credit worthiness. This in turn assists lenders that include banks and non-banking financial corporations (NBFCs) in making informed lending decisions with better risk-adjusted margins.
Available on both the web and mobile, the firm uses proprietary algorithms to connect borrowers with the right financial institutions. It also provides data analytics and risk scoring services along with a loan management platform to financial institutions.
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The startup has also helped automate workflows and risk assessments, thereby making the loan disbursal process much more efficient.
IndiaLends has partnered with around 10 financial institutions and recently expanded its services to Mumbai and Bangalore. It claims to process over 300 loan requests everyday offering loans between INR 50,000 and INR 15 lacs (US$750 and US$23,000).
“India Lends is now working with 10 NBFCs, has processed 8,000 loan applications, and INR 3 crore (approximately US$500,000) of loans have been approved and distributed. The August loan disbursal numbers were 300 per cent of July and 400 per cent of June numbers. This new round of funding will ensure that the company not only maintains but accelerates its pace of growth,” said Deepak Shahdadpuri, Managing Director of DSG.
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