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Indian Fintech startup IndiaLends attracts investment of USD 10 million

Jul 12, 2018 by Meeta Ramnani
Indian Fintech startup IndiaLends attracts investment of USD 10 million

Indian consumer lending fintech startup, IndiaLends, which provides unsecured/personal loans between INR15,000 and 25,00,000 (USD 218 to 3600) managed to bag an investment worth USD 10 million as part of its Series B funding round on July 9.

The investment was led by ACPI Investments, and also saw participation from Ganesh Ventures, American Express Ventures, Deepak Shahdadpuri and AdvantEdge Partners.

The New Delhi-based company plans to use the funds to expand its operations to India’s tier II and III cities and start at least two new services.

Currently, the startup connects over 40 banks and Non-bank Financial Companies (NBFCs) to provide hassle-free unsecured/personal loans to customers.

Speaking exclusively to The Passage on Tuesday Mayank Kachhwaha, one of the two founders of the venture explained that his company thrives by bridging the demand-supply gap in loans.

“A lot of banks and financial institutions are sitting on a lot of capital that they want to deploy, but they are not able to because the cost of originating a loan for them with their current manual processes is so high that they are not able to justify doing a large number of loans. So there is no supply shortage, we are trying to solve that problem.”

Besides expansion, his organisation is now looking to roll out line of credit and small loan services for buying gadgets and home appliances.

A line of credit is an approved credit amount that a customer can draw at will. Unlike traditional loans, the customer is charged interest only against the money actually borrowed rather than the whole amount.

“We have realized that line of credit is a product that our customers are very interested in. So that they don’t want to continue looking for a loan. Once they get a line, they can draw against it and pay back accordingly. We are working with some partners in coming up with that product. There is also a huge demand for loans on consumer utility products like phones, TVs, refrigerators, microwaves etc. So a product to serve that end will also be up soon,” Kachhwaha said.

Besides serving as a source of quick and easy loans for individuals, IndiaLends also acts as a platform for an NBFC or a bank to deploy its capital in the most efficient manner possible, helping these financial institutions manage everything from sourcing customers, marketing, to the technology.

Loans amounting to a total INR 500 crores (over USD 72 million) and an undisclosed number of credit cards have so far been approved on the IndiaLends platform.

Asked as to the role of the banks in the process, Kachhwaha clarified that their company’s role is limited only to creating the demand for the loan.

“When the credit decision is being taken, at that point the bank is very much involved in agreeing to the profile of the person and the type of loan being given to that person. All the parameters are pre-decided and the final say to grant the loan or not still stays with the bank and NBFC,” added Kachhwaha.

A lot of small and large NBFCs like Bajaj and Capital First, use the IndiaLends platform as a plug-and-play solution. While many others that have so far been into corporate lending only but want to step into retail lending, also use the IndiaLends platform as well.

“There are a lot of midsize NBFCs that are coming to us who haven’t done retail lending and want to enter the space. So we will continue to have a lot of these NBFCs onboard because again it will fulfil the demand supply gap,” said Kachhwaha.

Another interesting feature of the platform is the section dedicated to financial advice ranging from “basics” to “advanced.”

“After an experience of being 3.5 to 4 years in the field, I think financial literacy in India is quite poor. Sometimes, people don’t understand what products they are getting into and what are the real meanings of Interest rate, APR etc. We want to be the ones who educate the customer as well and help them understand what credit really means,” concluded Kachhwaha.

IndiaLends was founded in March 2015 by Gaurav Chopra and Mayank Kachhwaha.

Meeta Ramnani

Meeta Ramnani is a Bangalore-based tech reporter. She focuses on emerging startups in the fintech, edutech and healthcare space. She can be reached at

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