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.