FinTech startup Cash Suvidha raises USD 2.7 mn for expansion
Delhi-based FinTech startup Cash Suvidha, the trade name of Usha Financial Services Pvt. Ltd., raised an institutional debt of USD 2.7 million from various financial institutions towards driving growth.
New Delhi : Delhi-based FinTech startup Cash Suvidha, the trade name of Usha Financial Services Pvt. Ltd., raised an institutional debt of USD 2.7 million from various financial institutions towards driving growth.
The company provides a variety of loans such as entrepreneur loan, sme loan, and personal loan-among others. The funds raised have come from six Financial Institutions and will be primarily used to facilitate further lending to Small and Medium Enterprises (SMEs) and personal loans, particularly in Delhi NCR, Bengaluru, Pune, Hyderabad and Mumbai.
"This working capital infusion will provide propulsion for further accelerating the company's exciting growth plans. The funds so raised will be used to replenish our loan book and widen our reach across the country. We are confident that our relationship with these institutions will help us in empowering more SMEs by addressing their working capital requirements," said founder Cash Suvidha, Rajesh Gupta.
With the increased focus towards a cashless economy, India is undergoing major shifts in this era of increasing digitisation. In addition, government's push for financial inclusion, digitisation, and start-up activity has led to the introduction of various policy initiatives which has provided a strong foundation to the FinTech sector in India.
Cash Suvidha receives around 15,000 loan applications per month and has disbursed a total amount of Rs. 102 crore since its inception in 2016. It has developed its own 'Suvidha Score' for assessing creditworthiness using social media portals to check educational and professional backgrounds, tracking lifestyle spends, payments behavior, and spending patterns.
Cash Suvidha is driven by information based lending, online application acceptance; and viability based financing. It disburses loans in 48 hours at 19-28 percent on reducing balance EMIs. The decisions are taken based on its logarithms of human behavior, the social quotient of the borrower, and so on.