Bengaluru-based Datasigns Technologies Private Limited, which operates loan platform Shubh Loans,on Thursday said it had raised Rs 34 crore (or $4.78 million) as a part of their Series A2 funding led by Omidyar Network India. Existing investors Saama Capital, Beenext, SRI Capital, and Pravega Ventures also participated as a part of this round.
The funds raised in this round will help Shubh Loans expand its customer sourcing platform, work on increasing its technology capabilities, and grow the data science team and credit scoring platform to incorporate next-generation features, including ‘Credit locks’ (procedural credit features that promote good client behaviour). The startup will also grow its on-ground sales team and expand distribution to nearly 40 cities by end of the year.
Founded in 2016 by Monish Anand and Rahul Sekar, Shubh Loans provides personal loans to the emerging segment of underserved and new-to-credit borrowers at the lower end of the income spectrum.
Speaking about the company’s goal for the future, Monish Anand, Founder & CEO, Shubh Loans, said,
“Shubh Loans’ partnership with Omidyar Network India speaks of the shared focus that both organisations have towards emerging technology and inclusiveness. The infusion of funding will expand our footprint in India and improve customer experience by augmenting data science capabilities. By providing timely access to loans for an underserved market, we ensure that aspiring Indians are not denied rightful borrowing for their personal needs.”
In an earlier interview with YourStory, Shubh Loans claimed that it provides credit to the ‘Next Billion’ (households with an annual income of Rs 1.4 lakh and Rs 4.5 lakh). It also helps employees with a monthly income of Rs 12,000 or more get loans of up to Rs 5 lakh with long EMI tenure (up to four years).
Commenting on this investment, Amol Warange, Principal at Omidyar Network, said,
“Shubh Loans not only provides credit to an underserved market, but also leverages technology to promote financial literacy by handholding its customers towards better credit behaviour and financial health. This, in turn, leads to a more meaningful life for its customers. We are excited to partner with Monish, Rahul, and the rest of the Shubh Loans team.”
The startup has earlier raised $1.5 million in pre-Series A funding in 2017 from SRI Capital, Beenext, and Pravega, and $4.2 million in a Series A round of funding led by Saama Capital.
(Edited by Teja Lele Desai)