OYE Fintech, which operates a consumer-focused lending platform called OYE! Loans, has raised $2.25 million from GAIN Credit. OYE! Loans currently serves new-to-credit and new-to-workforce consumers with one year EMI loans, with ticket-sizes ranging between 10K and 1L INR.
The company leverages alternative data to assess risk on customers who have thin or non-existent footprints on the credit bureau. The loan application to disbursal process is largely online, disbursing the loans in 2 days, claims the company.
“This funding marks a reiteration of GAIN Credit’s long-term vision of becoming a global fintech leader, driven by the mission of empowering the lives of the underserved and underbanked by providing responsible access to credit. In addition to the capital provided, OYE! is built on the back of our strong digital lending technology and talent footprint in India”, said Mukund Venkatesh, Managing Director India – Global Analytics India, a subsidiary of GAIN Credit.
With the support of Northern Arc Capital (formerly known as IFMR Capital), its lending partner, OYE Fintech will use the newly secured funds to strengthen its underwriting models aimed at new-to-credit consumers, scale-up operations, and enhance its footprint to cover multiple cities. Currently OYE! Loans is only operating in Chennai.
In the process, the company will stay focused on leveraging the digital ecosystem to evolve towards a completely paperless process with virtually no human intervention – a business model that its parent company GAIN Credit has perfected from years of operation in the UK.
Commenting on the development, Kshama Fernandez, CEO – Northern Arc Capital, said, “As OYE!’s principal debt partner, we are pleased with the strong growth and expansion plans of the company. We look forward to continuing our support to the company in its journey, as it resonates with our aim of empowering financially-excluded households and sectors with access to credit solutions”.