SMEcorner, which lends to micro, small and medium enterprises (MSMEs), has raised $30 million through a mix of equity and debt, a senior company executive said.
This marked the close of its Series B funding round which was led by private equity firm Paragon Partners with an investment of $10.5 million, Samir Bhatia, founder and chief executive of SMEcorner, said in a telephone interview.
Bhatia said the funds will be used to expand its operations.
“The additional capital will enable us to reach over 20,000 new customers, while our total loan disbursements could go up to ₹1,500 crore by the end of this financial year," he said.
The funding round also saw participation from Bhatia and existing investors such as Quona Capital, Accion Venture Lab and some high net-worth individuals.
The Mumbai-based non-banking financial company (NBFC), owned and operated by Digikredit Finance Pvt. Ltd, began operations in 2015 as an online marketplace for SMEs that connected them to more than 30 institutional lenders. It started its own lending operations from February 2018 after receiving a NBFC license from the Reserve Bank of India.
SMEcorner mainly provides small unsecured business loans to shopkeepers, which form nearly two-thirds of its customer base. It is present in 15 cities, including Mumbai, Pune and Delhi. So far, the company has served more than 8,500 customers, while disbursing loans in excess of ₹550 crore with assets under management (AUM) of ₹400 crore.