Bengaluru-based Datasigns Technologies, the company that operates online lending startup Shubh Loans, has raised around ₹29.5 crores ($4.2 million) in a fresh funding round led by venture capital firm Saama Capital.
The funds raised will be used to boost the technology platform and to build the data science team.
Shubh Loans was founded by Monish Anand, Rahul Sekar, Anand Barua, and Tushar Patel in 2016. The startup is utilizing real-time data analytics and credit reports based on alternative data, to help lenders find creditworthy borrowers.
It enables the lenders by providing them access to the underserved market segments, beyond the ambit of traditional financial institutions. While it serves the lower income groups, it also provides vernacular language support to its customers.
It offers loans across various non-discretionary categories including medical emergencies, education, managing the house or rental deposits. The fintech startup is also planning to start providing credit to self-employed people like kirana shop owners and other small shop owners.
Currently, the average loan size stands at ₹68,000. It disburses loans through its nine bank and NBFC partners.
“We will start disbursing loans to the self-employed segment from September. So far, we were doing it through partnerships with other startups, lending to people such as beauticians, carpenters, etc. listed as service providers on their platforms, but now we want to tap the open market,” said Anand.
The startup claims to have disbursed ₹35 crores in loans during the FY2017-18 and plans to cross ₹150 crores in lending for the coming financial year 2018-19. It also plans to apply for an NBFC license from RBI, to spruce up its lending.