OkCredit is set to raise a $1 million in form of convertible debt from its US-based holding entity OkTech Inc.
The company plans to use the funds for capital expenditure and working capital needs.
OkCredit was founded by Harsh Pokharna, Gaurav Kumar, and Aditya Prasad in 2017. It is based out of Bengaluru that provides merchants with a simple and reliable means of keeping credit and payments records for their business carried out on credit basis.
It digitizes their transactions and records payment reducing the burden of maintaining and accounting paper account books.
The ability to provide an on-demand visibility of the merchant’s record to the customers is possible for the first time.
The platform, recently, raised $15 million as a part of its Series A round led by Tiger Global Management.
Owned and operated by Psi Phi Global Solutions Pvt. Ltd, OkCredit is present in over 1,000 locations, and is said to have maximum customers in Hindi-speaking regions of the country.
The app has reached an installation base of 1.3 million merchants, and about 900,000 of them are using the platform every month, said a release.
The startup faces competition from players like Paytm, PhonePe and BharatPe, which are aggressively trying to digitise the small merchants.