Asset leasing solutions company Origa Renting Pvt. Ltd said on Wednesday that it had raised Rs7 crore in funding from 500 Startups, an accelerator and investment fund, ah! Ventures and a group of angel (individual) investors.
The company founded in 2013 by Shrirang Tambe is looking to use the funds for building robust technology for customer acquisition, asset management and expanding to new geographies.
“The most exciting thing about Origa is that it is democratizing how SMsEs (small and medium enterprises) in India can procure and manage assets that typically have a high capex. This is an incredibly large market that’s been underserved by traditional sources of credit. It’s another example of disrupting the status quo in Indian finance,” Pankaj Jain, partner at 500 Startups, said in a statement.
The market for alternative financing is conservatively estimated to be $50 billion, 46% of the SME financing in Europe and 72% of SME financing in America takes place through asset leasing, according to data provided by the company. In India, it is less than 1% of the total credit disbursed.
“Financing through asset leasing for revenue generating assets creates capacities, capacities creates jobs and income, which finally goes towards contributing to the GDP of the nation. We are inculcating a new thought – financial inclusion at B2B level,” said Tambe.
Origa provides alternative financing through its asset leasing solutions, it provides a blend between an online model and an offline model for delivering a financial product to businesses which do not get financed from the traditional financing system.
The company expects to touch an asset book of $100 million within the next three to four years in India.