Online lending platform Kissht has raised a $ 30 million Series C from an investor group led by Vertex Ventures SE Asia & India and Sistema Asia Fund. Existing investors Fosun RZ Capital, Ventureast and Endiya Partners also participated in the new round.
Kissht (which stands for EMI in Hindi) offers small consumer and personal loans to its customers through a financial technology platform integrated with online and offline merchants.
The company plans to use the funds to expand its geographic presence and product development. It will also use some of the new equity to build a $ 100 million loan pool over the next 12 months, where it will also partner with leading banks and NBFCs.
Founded in 2015 by Krishnan Vishwanathan and Ranvir Singh, Kissht had raised around $ 13.5 million in its previous rounds.
Talk to Activity area, Krishnan Vishwanathan said the company is trying to be the go-to platform for all kinds of consumer and personal finance needs of clients, with the income level of 10,000 to 50,000 per month. They can work in the formal and informal sectors.
“There is a huge opportunity in the lending space in India with only 7-8% credit penetration. Compared to that, developed markets are at 100 percent and developing markets like China are already at 40-50 percent. India has a large base of underserved customers who do not have a credit score or data. We depend on alternative data to lend to these customers, ”said Vishwanathan.
Dhruv Kapoor, Managing Director of Sistema Asia Capital, said: “India is a credit-strapped country with an annual credit gap of $ 140 billion (approximately) which Kissht is filling with its proprietary technology and financial products. innovative.
Kissht has developed a proprietary self-learning algorithm, which assesses a customer’s credit profile in a fraction of a second based on more than 2,000 digital fingerprints, said Vishwanathan.
Currently, Kissht is present in more than 50 online outlets and 3,500 offline outlets in categories such as consumer durables, electronics, healthcare, alternative energy and education; allowing customers to easily access credit for their purchases.
It is present in 35 centers and plans to reach 100 to 150 within two years. It disburses loans worth around 60 crore each month and plans to double it to 120 crore by the end of March. All loans are disbursed from the company’s balance sheet.
Focus in advance
About 85 percent of the company’s loan portfolio is devoted to consumer or purchase credit. However, he expects faster growth in the personal loan segment, where the ticket size is around 70,000 to 80,000, as the propensity to take out multiple personal loans is higher today.
“We provide personal loans to clients who have completed at least one consumer loan transaction with us. Personal loans will help us create more loyal and loyal customers, ”said Vishwanathan, adding that in the coming months, personal loans will be bundled with insurance and guarantees. In addition, the cost of risk is lower in personal loans and allows to obtain better margins than consumer loans. Kissht, however, does not grant loans to students or clients with an irregular repayment history.
The company also ensures that its NPA is 1.5 percent compared to the industry average of 3 percent. He also expects to break even at an operational level by March 2019. “We will be profitable when we have a monthly execution rate of 100 to 120 crore yen,” Vishwanathan added.
Ranvir Singh, co-founder of Kissht, said: “Taking out a loan remains a deeply undemocratic experience in India. Customers not only want a loan, they want it instantly. Unlike traditional players, we have not been shy or hesitant in using data. We have just scratched the surface of purchase financing. We aspire to create the indelible experience of a worthy loan that will build customer loyalty. “
Kissht provides and sanctions loans within 2-3 minutes, whereas NBFCs take a day to process the loan as they are not based on alternative data and still rely on physical documents.