Cash Suvidha, a Delhi-based startup that offers online lending services, has announced that it has secured $2.5 million in a new debt funding round through financial institutions and private placement.
Of the $2.5 million, $1 million comes from two financial institutions and $1.5 million through private placement on Non-Convertible Debentures.
The funding will now help the company increase the loan books of the company. The loans will cater to financing SMEs and individuals particularly in Delhi NCR, Bengaluru, Pune, Hyderabad, Mumbai, and Rajasthan.
Commenting on this new funding round, 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.
Cash Suvidha offers business loans to Small and Medium Enterprises (SMEs), Micro Small and Medium Enterprises (MSMEs), and women entrepreneurs and personal loans to individuals. The company claims to receive over 15,000 loan applications per month and has disbursed more than 122 crores since its inception.
The company says that it has developed its own ‘Suvidha Score’ for assessing creditworthiness using social media portals to check educational & professional backgrounds, tracking lifestyle spends, payments behavior, and spending patterns.
Cash Suvidha, founded by Rajesh Gupta and Anoop Garg in 2016, offers information based lending, online application acceptance, and viability based financing. It disburses loans in 48 hours and charges around 19-28 percent on reducing balance EMI. The company has recently raised about