Mumbai-based PaySense has raised ₹124 crores ($18 million) in series B funding led by PayU, a leading financial service provider shelling out around ₹79 crores ($11.5 million). PayU had participated earlier in the series A funding. Other existing investors that participated in this round included Jungle Ventures and Nexus Venture Partners.
The funds raised will be used to tap the emerging middle class of India to help them with easy access to formal credit.
PaySense is a fintech startup that provides instant loans to its customers at low-interest rates. It was founded by Prashanth Ranganathan and Sayli Karanjkar in 2015. The company provides loans to customers who do not have access to easy credit and are in need of instant credit for any specific purpose.
The startup has partnered with IIFL, India’s leading non-banking finance company to process loans. It also claims to provide loans up to ₹2 lakhs within minutes.
PaySense has reached the mark of ₹50 crores worth of monthly disbursal rate, and it is targeting to double this number in the coming months.
Siddhartha Jajodia, global business head for credit at PayU, said, “PaySense is leveraging the IndiaStack platform very well to create additional capabilities beyond those of the traditional credit bureaus to generate strong underwriting of retail loans,”.
PayU, a leading online payment service provider backed by Naspers provides a payment gateway for its users and merchants enabling them to make swift and secure transaction all around the globe. PayU was founded by Jose Velez, Martin Schrimpff, Nitin Gupta, and Shailaz Nag in 2011.
Its operation spans across 17 markets across Asia, Central and Eastern Europe, Latin America, the Middle East and Africa, enabling 2.3 million consumers in the region.
PayU has been particularly keen on expanding in the Indian digital lending space, considering this is its second investment in the digital lending space in India. Earlier PayU had invested in Zest Money, a consumer check out financing startup.
In related developments, MobiKwik enters in digital lending, Mumbai-based RupeeCircle raises ₹4 crores from Mahindra Finance.