Delhi-based consumer lending startup IndiaLends has raised $10 million in a series B round of funding led by London-headquartered asset management firm ACPI Investment Managers and India-focused venture capital firm Ganesh Ventures.
Amex ventures, along with the other existing investors in the company, including DSG Consumer Partners and AdvantEdge Partners, also participated in the latest financing round, which was closed last week, the company said in a statement.
The latest funding round comes a year and a half after IndiaLends raised $4 million in a Series A round of funding led by American Express Ventures, the corporate venture investment arm of American Express Co. The company’s previous funding rounds included an undisclosed amount in pre-Series A stage in July 2015, and a $1 million bridge round in October 2015.
The company has raised an estimated $15 million in disclosed funding since inception.
Started in March 2015 by ex-Capital One duo Gaurav Chopra and Mayank Kachhwaha, IndiaLends is a credit scoring and analytics platform focused on disrupting the fragmented consumer lending market in the country. The company operates an online marketplace that allows consumers to shop for loan products, as well as access credit scores and financial education.
IndiaLends, which competes with the likes of online financial marketplace PaisaBazaar, LendingKart as well as banks, intends to use the funding proceeds to launch new products.
“RBI data on sectoral deployment of bank credit in FY18 reflects the tremendous growth potential of personal loans. We will shortly be launching new products such as an app-based line of credit and point-of-sale loans to meet the needs of our customers,” said Chopra in a statement.
The other Indian startups operating in the online lending space include Capital Float, LenDenClub, Aye Finance, Deal4Loans, and LoanZen among others.
Financial products comparison site Paisabazaar had raised around Rs 200 crore ($31.6 million) from its parent company EtechAces in January. Recently, Info Edge India along with Singapore’s Temasek also announced an investment of $27.6 million in EtechAces.
Aye Finance, a provider of loans to small businesses, last month said that it has raised $21.5 million in its Series C round led by CapitalG, the venture capital fund owned by Alphabet Inc, with participation from SAIF Partners and LGT. Capital Float, in April, raised $22 million in equity funding from Amazon Inc., taking the total equity funding in the company to $107 million.
Meanwhile, Lendingkart raised over $87 million in equity funding in February led by Singapore’s Fullerton Financial Holdings Pte Ltd, along with participation from existing investors.