Online lending platform Cash Suvidha has raised $2.5 million in debt financing through financial institutions and private placement. The fintech startup has raised $1 million from financial institutions and $1.5 million through private placement on Non-Convertible Debentures.
The company plans to use the latest funds in user acquisition. The loans will cater to financing SMEs and individuals particularly in Delhi NCR, Bengaluru, Pune, Hyderabad, Mumbai, and Rajasthan.
Rajesh Gupta, Founder of Cash Suvidha, said,“This capital infusion will provide the impetus for further accelerating the company’s exciting growth plans. The influx of funds will enable us to replenish our loan books and will allow us to cater to a wider range of SMEs across the country.”
The startup claims to receive 15,000 loan applications on a monthly basis and said it has disbursed a total amount of Rs 122 crore since inception. It further, claims to have disbursed loans to over 30,000 borrowers, with the average ticket size ranging between Rs 20,000- Rs 5 lakh.
The company-issued statement also stated that Cash Suvidha is currently profitable, having maintained its break-even status since the beginning of operations.
At this juncture, India has created an ecosystem that provides start-ups an opportunity to exponentially grow into big businesses. Right from delving into a range of unexplored segments to engaging with foreign markets, Fintech start-ups are delivering innovation that was previously difficult to achieve. The Indian Fintech software market is poised to touch USD 2.4 billion by 2020 from the current USD 1.2 billion in the Financial Year (FY) 2016.