CreditMantri raises $7.6 million in funding led by Quona Capital
CreditMantri co-founder and CEO Ranjit Punja said the funds will be used for customer acquisition and investment in the technology platform, creation of new products and expanding the workforce
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New Delhi: CreditMantri Finserv Pvt. Ltd, which runs loan services platform CreditMantri, on Wednesday said it raised $7.6 million (Rs51.4 crore) in series-B funding led by Quona Capital and Newid Capital, two fintech-focused venture capital firms based in the US.
Quona’s investment is from Accion Frontier Inclusion Fund, a fund sponsored by Accion International, a non-profit organization that supports micro finance institutions across the world, and managed by Quona
Existing investors Elevar Equity, IDG Partners and Accion Venture Lab also participated in the round. In June 2015, the Chennai-based start-up raised series-A investment of $2.5 million.
The funds will be used for customer acquisition and investment in the technology platform, creation of new products and expanding the workforce, co-founder and chief executive officer Ranjit Punja said.
Founded in 2012 by ex-Citibank executives Punja, R. Sudarshan and Gowri Mukherjee, CreditMantri is a multi-services platform that helps borrowers secure loans from its partner financers. The company uses traditional data like credit card payment history and alternate data from social media and other personal records to create a credit profile of the user.
The credit profile is used by banks and other financial institutions in deciding on a borrower’s loan application. This is typically used by lenders to service underserved categories—such as first time borrowers or those with limited credit history, or even those with problematic credit record—thereby increasing the gamut of borrows.
There are two ways this is done: it allows borrowers to discover loan products best matched with their credit profile; secondly, it connects customers profiled on its platform to suitable banks and financial institutions on lead generation basis. Punja said the company has tie-ups with over 40 lenders including HDFC Bank, ICICI Bank, Sri Ram Citi Union Finance and Bajaj Finance.
“Lending in India, and doing so responsibly, is a huge opportunity, and alternative data is the key to unlocking this potential. The digitization of Indian consumers’ financial data, pioneered by CreditMantri, is the catalyst that will help build a truly financially inclusive India,” said Ganesh Rengaswamy, a founding partner at Quona Capital.
The company claims to close about 1,000 loan deals in a month and has till now served over 1.4 million customers.
Besides this, CreditMantri also helps customers with a host of services on understanding their credit score and ways to improve it. Customers are also advised on loan products best suited for them.