SmartCoin plans to utilize funds for upgrading its technology platform and grow the team as it continues its expansion plans
Mumbai: SmartCoin, a Bengaluru-based micro-lending startup, has raised $2 million in a pre-series A round of funding led by a Chinese Venture fund. US-based Accion Venture lab, which invests in micro lending startups, co-invested in the fund.
The round also saw participation from existing investors, including early stage investor Unicorn India Ventures and ISME ACE, a Mumbai-based fin-tech accelerator.
Founded in 2016 by IIT and IIM alumni Rohit Garg, Amit Chandel, Vinay Kumar Singh and Jayant Upadhyay, SmartCoin extends small to mid-size ticket loans to mobile users through credit scores created using machine learning algorithms.
The company plans to utilize funds for upgrading its technology platform and grow the team as it continues its expansion plans and looks to acquire more customers.
“We believe that we have just managed to scratch the surface and this opportunity remains hugely untapped. Thus, bringing on board large investors who understand fin-tech better will help us extend our customer base over time," said Rohit Garg, co-founder and chief executive of SmartCoin.
“SmartCoin illustrates how innovative lenders are leveraging data, mobile access, and India’s digital infrastructure to extend loan access for the financially underserved," said Michael Schlein, president and chief executive of Accion.
Several fin-tech start-ups in the lending space have raised funds in the recent months.
Lending platform Ziploan in October raised $3 million in funding led by Matrix Partners. Eduvanz Financing Pvt Ltd., an education technology start-up that provides loans to students for skill development also raised funds from Blinc Advisors, a venture capital fund in February this year.