Bengaluru-based online lending startups Avail Finance has raised INR 87 Cr ($11.8 Mn) in Series B funding round led by US-Based Falcon Edge India-managed Alphawave Incubation at a valuation of INR 500 Cr ($68.1 Mn). Existing investor Matrix Partners had also participated in this round.
According to the Ministry of Corporate Affairs’ filings, Alphawave Incubation has infused nearly INR 57 Cr in Avail Finance, while Matrix Partners invested INR 30.2 Cr. After these transactions, Matrix Partners will own 26.4% stake and Alphawave will get 11.5% in the fintech startup. The development was first reported by Entrackr.
Prior to this, the company had raised $9 Mn from Matrix Partners last June to offer a complete online banking solution for blue-collar workers by catering to a multitude of their financial needs such as savings, investments, and insurance.
Commenting on the fundraise, Ankush Aggarwal, founder and CEO of Avail Finance said, “While we started with a pure-play lending product, we realised that the blue-collar segment needs a more holistic financial platform. We believe that with our unique combination of customised products and focus on customer experience, we can work towards enabling true financial inclusion, while serving these customers profitably.”
Founded in 2017 by Aggarwal and Tushar Mehndiratta, Avail Finance provides short term loans to the blue-collar workforce in India, including gig workers such as cab drivers and delivery persons. Only users earning less than INR 35K can avail a personal loan on the platform. Avail Finance allows personal loans upto INR 40K for a maximum tenure of eight months at a fixed interest rate of 2% per month.
It has also partnered with companies such as Ola, Swiggy, Ecom Express, and Quess Corp, to offer salary advances to its employees. It also runs a financial literacy program to help users maintain good financial health.
Digital lending is one of the fastest-growing segments in India’s fintech space. A BCG report has predicted the digital lending industry will touch $1 Tn marks in the next five years. Some other lending startups operating in India are Aye Finance, LazyPay, EarlySalary, CASHe and LoanTap, among others.
CASHe has recently raised INR 12 Cr in two tranches from Surendra Kedia Family Private Trust and Saroj Kumar Patnaik. CASHe, which was founded in April 2016, is an alternative lending platform delivered through an app. It provides unsecured short-term personal loans to young employed professionals based on their social profile, merit, and earning potential.
The post Avail Finance Bags $11.8 Mn From Falcon Edge-Led Alphawave, Matrix appeared first on Inc42 Media.
Author: Kritti Bhalla
Source : https://inc42.com/buzz/avail-finance-bags-11-8-mn-from-falcon-edge-led-alphawave-matrix/
Date : 2020-08-28T12:00:10.000Z