The company plans to use the funding to upgrade its technology platform
Bengaluru-based microcredit company SmartCoin Raised $ 2 Million in Pre-Series A Funding Round run by an undisclosed Chinese venture capital fund.
Other participants in the cycle include Accion Venture Lab, US-based Unicorn India Ventures, and ISME ACE, a Mumbai-based FinTech accelerator.
The company will use the funding to invest more in technology and grow its team while continuing its expansion plans, with the goal of reaching a much larger customer base.
Commenting on the evolution, Rohit Garg, Co-Founder and CEO, SmartCoin said, “We have seen a sharp increase in growth over the past year and have successfully disbursed over 50,000 micro-loans. With this cycle, we plan to increase our momentum and increase even more than 10X over the next six to 12 months. Having specialists on board as investors who are passionate about microcredit will only help us cover more ground not only in India but also around the world.
Speaking on financing, Michael Schlein, President and CEO, Accion Venture Lab said: “SmartCoin illustrates how innovative lenders are harnessing India’s data, mobile access and digital infrastructure to expand access to loans to financially underserved people. “
SmartCoin is a mobile app-based lending platform that claims to assess a potential borrower’s risk profile in real time, using data science and machine learning algorithms. SmartCoin’s proprietary credit underwriting engine aggregates thousands of data points on a customer’s smartphone, including financial transactions, device usage, and app behavior, to create a personalized credit score .
The company raised an undisclosed amount of seed funding from Mumbai-based Unicorn India Ventures and other investors in April 2017.
Growth of the FinTech segment
In the micro-lending space, SmartCoin competes with players like KrazyBee, buddy, Onemi, Finomena and Quick. Other startups in the lending space are Cash Suvidha, Creditas etc which also recently raised funds.
Recently, Delhi-based online lending platform Cash Suvidha raised $ 1 million in a pre-Series A funding round from Initia Holdings; Vipin Agarwal, partner of India Industrial Growth Fund and others.
Additionally, Gurugram-based fintech startup Creditas Solutions raised an undisclosed amount in a pre-Series A funding round led by its existing investor 1Crowd, an equity crowdfunding platform. Prior to that, in February, Ahmedabad-based SME lending platform Lendingkart secured more than $ 87 million in a round of funding as part of its Series C round.
In December 2017, Bengaluru-based SME online lending platform Capital Float raised $ 45 million in Series C financing, led by Silicon Valley-based Ribbit Capital.
In October 2017, Bengaluru-based KrazyBee microcredit platform raised $ 8 million in Series A equity and debt financing led by Xiaomi Technologies and Shunwei Capital.
Overall, according to the Inc42 DataLabs Indian Startup Funding 2017 report, the Indian fintech industry received $ 3.01 billion out of 111 deals in 2017. Growing investor interest in the field of online lending s ‘explained by the increase in opportunities in the fintech and Indian loans segment.
A NASSCOM Report previously forecast India’s fintech software market to reach $ 2.4 billion by 2020, up from $ 1.2 billion currently.
As even the central government has recognized the growth potential of the fintech sector, companies and startups are now working intensively on their products. With the latest round of funding, the product portfolio of microcredit company SmartCoin will be worth watching.