Monthly Archives: March 2018

Delhi-based fintech start-up Cash Suvidha has raised $ 1 million in its pre-Series A investment from Initia Holdings Ltd., Vipin Agarwal, Partner in India Industrial Growth Fund and others. The company plans to use the newly guaranteed funds to increase its customer base and further strengthen its technology infrastructure.

Founded by Rajesh Gupta, Anoop Garg and Geeta Goswami, the company provides business loans to SMEs, MSMEs, women entrepreneurs and personal loans to individuals. The company is currently operating in Delhi NCR area, Bangalore, Pune, Hyderabad, Mumbai and Rajasthan.

Commenting on the capital raised, Rajesh Gupta, Founder of Cash Suvidha, said: “This capital injection would help us broaden our horizon and extend our best alternative lending services across geographies. We recently started our operations in Kota and Jaipur. Our next destination is Ajmer and other parts of Rajasthan. After covering Rajasthan, we will head to Gujarat and other parts of India. He added that 80 percent of the loans go to the SME sector.

The company claims to receive 15,000 loan applications each month and disburse the loans in 2 additional business days. The company has raised a total of $ 5.2 million and claims to have disbursed over Rs 152 crore.

In addition, Cash Suvidha has disbursed loans to over 35,000 borrowers with an average ticket of between Rs 20,000 and Rs 5,000,000.

According to a recent report, the P2P lending space in India is expected to hit the $ 5 billion mark in 5 years. This market dates back to 2012, when the first startup was launched. There are currently over 30 players in the market including i2iFunding, RUpaiya Exchange, LendBox, among others. Currently, some of the major P2P platforms claim to disburse loans amounting to around Rs 1 to 2 crore per month.

Arogya Finance, which provides unsecured medical loans, is targeting a more than six-fold increase in disbursements to 50 crore by FY17. Disbursements currently stand at ₹ 8 crore (approx.), Per year.

The increase in disbursements will be supported by a new line of funds for the Mumbai-based company, as well as expansion of operations.

Fund raising

According to Jose Peter, CEO of Arogya Finance, the company is already looking to raise funds – through debt financing – from a “large NBFC based in North India”.

The amount is likely to be 50 crore. That aside, the company could also explore the likelihood of attracting investors – to the tune of around 13 crore yen ($ 2 million).

It is open to other financing options such as subsidized loans from agencies and social venture capital funds.

“Disbursements will increase once we secure the 50 crore debt financing. If things go well, funding won’t be a problem, ”he said. Activity area.

Expansion

By FY20, the goal is to be a 1,000 crore company with over 2 lakh disbursements and pan-Indian operations, Peter said. It plans to expand into the Punjab, where it has just started operations. That aside, getting into Haryana and Telangana is also on the agenda.

So far, two-year-old Arogya Finance has provided loans to around 2,000 people in 10 states including West Bengal, Odisha, Jharkhand, Bihar, Maharashtra, Gujarat, Delhi-NCR , Karnataka, Kerala and Tamil Nadu.

Prepaid card

The NBFC has come up with a card – Arogya Card – which allows cardholders to get a pre-approved loan of up to ₹ 2 lakh. The card is valid for one year and renewable thereafter.

So far, less than 1,000 odd cards have been issued. The ultimate goal, according to Peter, is to issue nearly 18 lakh cards by FY20. Arogya Finance has a collection rate of 96 percent with annual interest varying between 12 and 15 percent.

The NBFC was formed to provide a new interface between health care providers and those who cannot afford these services. It also aims to tackle the problems faced by the needy.

It offers loans to those who are not part of the formal sector and lacks documents like proof of salary or a guarantee.