Finomena, a financial technology startup, has today raised an undisclosed amount of funding from venture capital firm Matrix Partners. The company or the firm has not revealed any other information related to this funding round.
A few other angel investors has also participated in this funding round, including Kaushal Aggarwal, MD and co-founder of Avendus and Harshvardhan Chamria of Magma Fincorp. Names of other investors has not been revealed.
Riddhi Mittal, co-founder of Finomena, said,
Finomena is disrupting how capital should be disbursed and collected. We decided to partner with Matrix Partners India as we believe they share our vision and will give us the necessary edge to win in this market.
The company was founded in 2015 by Abhishek Garg and Riddhi Mittal. The founders have previously worked with Facebook, Microsoft, Boston Consulting Group and Bain Capital.
Finomena has a unique combination of big data and finance to determine the credit worthiness of an individual. The platform works as an intuitive model to ensure that the disbursement of loans happen in a viable and efficient manner.
The company focuses on users who want to purchase high end phones, laptops and other consumer electronics online by opting for installment or financing options. They can use Finomena’s app or website to apply for a loan to purchase a product online.
It takes less than three minutes to fill an online loan application form and just 24 hours for the applicant to know the status of their loan.
As per the company, most banks and NBFCs do not cater to this segment due to lack of appropriate credit history and high operational costs. It claims to have re-thought the entire process end-to-end so that disbursing such loans at scale is viable.
Abhishek Garg, co-founder of Finomena, said,
India is a credit starved country. True financial inclusion will only come by use of mobile technology at mass scale. We believe we can use the power of machine learning algorithms and the digital footprint being created by each person today to evaluate their credit risk more holistically, thereby creating a win-win situation for the entire ecosystem.
According to Vikram Vaidyanathan, managing director, Matrix Partners India, Matrix believe in the founders’ approach to solving tough problems and product-tech capability. Fin-tech is a focus area for Matrix and they will make multiple investments in the space.