Founded by Pratish Gandhi, Abash Anand and Harshit Vaishnav in 2017, the startup enables a platform that connects borrowers seeking capital with lenders looking for ‘better than market’ returns.
Bengaluru based online lending platform, Credy, has raised $1.4 million in seed investment from Y Combinator, Khosla Ventures, Vy Capital and HNIs based out of California. The company plans to use the investment to scale up. Partner with institutions, hire people in operations and improve technology of the product.
Founded by Pratish Gandhi, Abash Anand and Harshit Vaishnav in 2017, the startup enables a platform that connects borrowers seeking capital with lenders looking for ‘better than market’ returns. Gandhi, Anand and Vaishnav are former Goldman Sach employees with over 15 years of experience in the field of finance and technology.
The startup was a part of Y Combinator W17 batch, which had Indian companies, including Playment, Bulk MRO, Servx, WiFi Dubba, among others. The startup is an online platform where users can apply for personal loans and school fees for reasonable rates. The interest ranges from 10 percent to 12 percent per year. The company claims to have an average ticket size of $540 with repayment tenure of 8 months. The company facilitates online credit profiling through its algorithms and credit bureau integration.
For availing the loan, the user needs to sign up on the platform, go through the required documents and details and sign-up through their Aadhaar number, avoiding the need of other documents, loan agreements and photographs. The claims to approve the loans in an average time of 24 hours with bank transference in another 24 hours. Credy further charges 2 percent as processing fee from the users on an approved transaction.
According to a recent published report by KPMG India and NASSCOMM, the Indian fintech market is expected to touch the $2.4 billion mark by 2020. The nation currently has over 500 fintech startups. Currently at a very nascent stage, the P2P lending market is expected to grow into a $4 billion market by 2023. P2P lending dates back to 2012, currently there are over 50 lending startups including faircent, Rupaiya Exchange, LendBox, among many others.