Online lending platform ZipLoan raises USD 3M for undisclosed round
Founderz: Kshitij Puri, Shalabh Singhal
Founded in: 2015
Financing status: USD 3 million for undisclosed round in 2017
Delhi-based online lending platform ZipLoan has raised approximately USD 3 million in a fresh funding round led by Matrix Partners India. The round also saw participation from numerous existing investors including Sarbvir Singh, managing director of Capital18; WaterBridge Ventures, and Whiteboard Capital.
ZipLoan was founded in 2015 by Kshitij Puri and Shalabh Singhal. The two previously co-founded Beckon Ventures, an online platform that connects credit-seeking small businesses with financial institutions in India. Prior to that, Puri worked as a principal of Pragati India Fund, a small and medium enterprise-focused private equity fund. Singhal, a CFA holder, founded a digital marketing startup,Credence. He also worked at Goldman Sachs prior to that.
ZipLoan is an app-based lending platform focusing on small and medium enterprise (SME) business loans. It uses an automated underwriting algorithm to generate a ZipScore to access each loan applicant. ZipLoan, a non-banking financial company, is registered with India’s central banking institution, the Reserve Bank of India.
Commenting on the investment, Vikram Vaidyanathan, managing director of Matrix India said, “With 40 million SMEs, SME-lending is a large opportunity, but with tough execution challenges. A cautious, technology-led approach can bring down underwriting and sourcing costs to serve the SMEs at smaller ticket sizes…. It’s still early days of the India fin-tech story and will continue to invest in the space”.
The startup will use the newly raised investment for team recruitment, market expansion, and technology enhancement.
(Top photo from 699pic.com)