LGT Lightstone Aspada, Unicorn Ventures and Accion Enterprise Lab participated on this spherical
That is Unicorn India Ventures’ third funding in SmartCoin
The corporate plans so as to add over 10Mn customers over the subsequent 12 months
Microlending startup SmartCoin has raised $7 Mn (INR 52 Cr) in a funding spherical led by LGT Lightstone Aspada. The corporate’s present traders Unicorn India Ventures and Accion Enterprise Lab had additionally participated within the spherical.
Unitus Capital acted as a monetary accomplice for this transaction. SmartCoin is planning to make use of this funding to increase its mortgage e-book to a different 10 Mn customers over the subsequent 12 months, providing INR 1,500 Cr ($200 Mn). Previous to this, SmartCOin had raised $2 Mn in Pre-Collection A funding spherical led by an undisclosed Chinese language enterprise fund. US-based Accion Enterprise Lab, Unicorn India Ventures and Mumbai-based fintech accelerator ISME ACE additionally participated on this funding spherical held again in 2018.
The startup additionally raised an undisclosed quantity of seed funding from Mumbai-based Unicorn India Ventures and different angel traders in April 2017.
Based in January 2016 by IIT/IIM alumni Rohit Garg, Amit Chandel, Vinay Kumar Singh, and Jayant Upadhyay, SmartCoin is a data-driven, microlending startup that depends on synthetic intelligence (AI) and machine studying (ML) instruments to disburse loans.
“SmartCoin’s enterprise mannequin has the flexibility to offer data-driven insights in a buyer phase that’s in any other case opaque and might unlock technique of formal credit score and monetary companies,” Kartik Srivatsa, managing accomplice, LGT Lightstone Aspada, mentioned.
SmartCoin supplies small-ticket private loans to micro-merchants and self-employed blue or gray collar staff, who’re in any other case ignored by giant banks, different non-banking monetary companies (NBFC) and micro-lending establishments.
The Bengaluru-based firm’s enterprise mannequin not solely improves the credit score historical past of the client but in addition permits them to get increased loans later if the preliminary mortgage is repaid on time. SmartCoin acquired its NBFC license final 12 months and has disbursed loans price INR 400 Cr thus far.
Garg highlighted that different monetary companies establishments select to disregard the phase due to the shortage of formal monetary and credit score histories, and that’s the place SmartCoin’s AI and ML-powered danger evaluation engines come into play. The corporate’s proprietary credit score underwriting engine aggregates hundreds of information factors on the client’s smartphone, monetary transactions, system utilization and app exercise to construct a credit score rating. As soon as authorized, the mortgage is transferred digitally to a buyer’s checking account, with documentation restricted to Aadhaar card and social media presence.