Credy, an online lending startup that provides small-ticket personal loans as well as school fees financing service, has announced that it has secured around Rs. 1.4 crores ($1.4 million) in its seed funding round.
The funding comes from Y Combinator, Khosla Ventures, Vy Capital, and a bunch of Silicon Valley-based angel investors. The startup will use the proceeds to significantly ramp up the loan book, forge partnerships with institutional lenders, hire talent for operations, and further build the technology to underwrite the customer.
Credy is an online platform which provides instant short ticket personal loans and school fees financing at reasonable rates. The interest rates for the loan ranges from 10 percent to 12 percent per annum. The average ticket size is $540 (Rs 35,000), and the average repayment tenure is eight months.
The company was founded in 2017 by former Goldman Sachs employees Pratish Gandhi, Abhash Anand and Harshit Vaishnav. Credy was also part of Y Combinator’s W’17 batch, which included other Indian companies such as Playment, Bulk MRO, Servx, WiFi Dubba and Supr daily.
The startup claims to have an automated eight channel repayment management tool for the disbursed loans, an in-house customisable loan management system (LMS), and a strong track record of risk management.
It says that it has invested a lot into fraud prevention, geared primarily towards weeding out frauds like the submission of counterfeit documents. It has also recently launched its borrower mobile app after several months in beta testing.