The Mumbai-based startup, which runs a digital credit platform, had earlier raised $2.3 million from Nexus Venture Partners and angel investors in 2015.
PaySense plans to use the new funds to invest in its technology and to expand its team and the reach of its operations. At present, PaySense is available in 9 major cities including Mumbai, Delhi NCR, Bangalore and Chennai with expansion plans to go pan-India soon.
The company claims to have 180,000 users and has disbursed loans worth Rs 30 crore in partnership with a non-banking financial company.
This marks Singapore-based Jungle Venture’s first investment in the Indian consumer lending space.
“We have patiently been looking at this space in India and feel very excited to eventually partner with the PaySense team and other investors. There are going to be a few mega companies being formed in this space and the PaySense team has demonstrated great understanding and traction on various aspects required to become a category leader here,” said Amit Anand, Founder and Managing Partner, Jungle Ventures.
Fintech has become one of the most sought after sectors by investors. Last month, Ahmedabad-based Lendingkart raised $4.6 million from Anicut Capital LLP. Also in April, another lending firm Capital Float raised $2.3 million from Mahindra & Mahindra Financial Services.