Mumbai based lending startup CreditMate has bagged another funding round from homegrown e-commerce and payment solution firm Paytm. As per reports, the firm is looking to invest anywhere around $5-10 million (Rs 33.5-67 crore) in the digital lending firm. Notably, Paytm had invested an undisclosed amount in the company last year as well.
Interestingly, the firm says that ever since Paytm infused money last year, the company has been growing leaps and bounds. Co-founder Jonathan Bill while speaking to ET claimed that ever since the infusion from Paytm, the firm has seen a 40% Month-on-Month growth.
Jonathan Bill and Aditya Singh had founded the firm in 2016 which offers affordable loans for second-hand-two-wheelers. The credit engine of the company uses data-driven algorithms which checks out if the customer has a good credit report. The company has made a huge network of dealers across Mumbai and Gujarat.
The company claims to have disbursed loans for 10,000 applications out of 15,000 which they have received till now. The average loan size is of Rs 52,000. “The first 12 to 18 months have been very well in terms of business and we have managed to restrict repayment failures to less than 1%,” Bill told Economic Times.
Interestingly, as other established platforms like Google, WhatsApp, and Hike enter the payment industry, Paytm is trying to do everything it can to have an upper hand in the industry. The move of further investment can be one of the thoughts behind the same.
CreditMate plans to enter the insurance business and Paytm might well again join hands with the company by infusing more money.
Image Courtesy : CreditMate,newskart