Finance Buddha, a financial services product startup, has today announced raising of its pre-Series A funding round from Chennai-based angel investing group The Chennai Angels.
The company has not yet revealed the amount that has been raised. However, it has stated that the amount will be utilized for the development of its technology platform and further expansion plans.
Parag Agarwal, cofounder of Finance Buddha, said,
This Pre Series A round of funding will be used to further develop our tech platform which will be integrated with various stakeholders in the loan origination, underwriting and disbursal process. This is our first round of external funding. We managed to scale the entire operations entirely through our internal cashflows and profit so far.
Founded around 3 years ago, the company has a hybrid marketplace model for financial services products like personal loan, unsecured business loan, home loan, loan against property and insurance.
According to the company, they are building proprietary algorithms which can result in more focused customer targeting and thereby further increase scale along with significant cost savings.
Finance Buddha, which currently has offices in around 12 cities, a team of over 200 employees and more than 500 business associates, is slated to disburse more than 1,000 crore loans in the current financial year.
The financial services company is working towards coming up with a solution where the entire loan process can largely be made paperless and a customer could potentially get an instantaneous approval without compromising on the underwriting and verification process.
The company’s list of banking partners include some of the largest banks of India, including ICICI Bank, HDFC Bank, Axis Bank, Tata Capital, Kotak, Punjab National Bank, etc.