<article>Mumbai-based digital consumer credit platform <a href="https://www.dealstreetasia.com/?s=PaySense" target="_blank" rel="noopener">PaySense</a> has raised $18 million in a Series B round of funding led by Naspers-backed payment gateway company <a href="https://www.dealstreetasia.com/?s=PayU" target="_blank" rel="noopener">PayU,</a> according to a statement on Friday.</article>

Mumbai-based digital consumer credit platform <a href="https://www.dealstreetasia.com/?s=PaySense" target="_blank" rel="noopener">PaySense</a> has raised $18 million in a Series B round of funding led by Naspers-backed payment gateway company <a href="https://www.dealstreetasia.com/?s=PayU" target="_blank" rel="noopener">PayU,</a> according to a statement on Friday.
The round also saw participation from Singapore&#8217;s <a href="https://www.dealstreetasia.com/?s=Jungle Ventures" target="_blank" rel="noopener">Jungle Ventures</a> and <a href="https://www.dealstreetasia.com/?s=Nexus Venture Partners" target="_blank" rel="noopener">Nexus Venture Partners</a>. PayU has alone injected $11.5 million in the latest financing round, the statement added.
With the latest funding, PaySense plans to strengthen its tech and data analytics team. It is currently a 90+ member team comprising of engineers, data scientists, product managers, and experts from finance, e-commerce and business development. The startup, which claims to have hit the Rs 50 crore monthly disbursement rate already, is targeting to double it within the next few months.
PayU and Nexus also participated in the startup&#8217;s $5.3 million Series A round that was led by Jungle Ventures. Prior to this, the startup raised $2.3 million from Nexus Venture Partners and angel investors in 2015.
Founded in 2015 by Prashanth Ranganathan and Sayali Karanjkar, Paysense claims to be using advanced data sciences to provide credit without the hassle of complex application processes, arduous physical proofs and long waiting time. The startup however does not lend from its own book, and relies on its lending partner India Infoline to process the loans.
&#8220;We continue to invest in our tech and team to deliver an exceedingly simple, fast and fully digital process for our customers. At this time, it’s opportune to bolster our relationship with PayU, as we share an allied vision of enabling more consumers in India to access the digital credit sector. The consumer lending market in India is ripe for disruption and this capital will equip us to focus on this huge, untapped market potential,&#8221; Ranganathan said.
Serving customers in over 50 cities across India, the company claims to have disbursed over 60,000 loans in the last 12 months. PaySense targets to become the leading risk assessment provider for over 160 million Indian households, currently underserved by traditional credit avenues, the statement added.
The latest investment marks PayU&#8217;s second major investment in India&#8217;s digital lending space. In February last year, it had led a $6.5 million Series A round for Bengaluru-based Chalk Farm Ventures, which operates consumer lending startup ZestMoney. PayU claims to support over 300,000 merchants and millions of consumers making payments online.
Siddhartha Jajodia, Global Head of Credit Business, PayU, said, &#8220;This investment in PaySense is part of an overarching goal to reinforce our credit portfolio in India and we will continue to strive for that through a mix of organic and investment approach.&#8221;
Other recent investments in the digital lending space include America&#8217;s Creation Investments and Falcon Edge leading a $29 million Series C financing round in SME financing platform OfBusiness a few days ago. Matrix Partners India led a funding round for Bengaluru-based Avail Finance in March. And, SME lending platform Lendingkart raised $87 million led by Singapore’s Fullerton Financial Holdings Pte Ltd. in February.
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The fintech startup had raised $5.3 million in a Series A round led by Jungle Ventures with participation from Naspers Group and Nexus Venture Partners in May last year.

India: Consumer credit startup PaySense raises $18m from PayU, Jungle Ventures

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India: Consumer credit startup PaySense raises $18m from PayU, Jungle Ventures

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