CreditMate, an online platform which enables users to get instant small loans, has received $500,000 in seed round of funding from India Quotient. The startup uses data-driven algorithms to lend against purchase of used two-wheelers.
Founded earlier this year, CreditMate is an online lender focused on the used two-wheeler market in India. The company says that the two-wheelers has been default mode of transport for India’s 1.3 billion citizens. It aims to solve the personal transportation problem by providing affordable loans.
The platform enables the users to enter the bike of their choice and their monthly income to determine their monthly EMI and loan repayment time. The company has also tied up with over 25 dealers in Mumbai. Currently, the service is available in the Mumbai region only.
Jonathan Bill, co-founder of CreditMate, said:
We are targeting a blue collared workforce segment which could range from beauticians to delivery boys, retail store employees, or even housewives. It’s an easy process and the end user can take possession of their bike within two working days.
The working of the platform is quite simple. Once you choose your bike/scooter & pay token to dealer to secure the bike, you can ask the dealer for CreditMate Loan & EMI options. Following that, you’ll have to submit your application and relevant documents on the platform. As per the company, they can pre-approve your loan within just 3 hours.
The company is currently working with dealer network to provide loans to individuals and corporates which are currently under-serviced by traditional lenders. It claims that its credit engine allow them to assess customers quickly and technology drives operational efficiency.
India Quotient claims to be a new type of early stage investor and funds companies that are building disruptive businesses aimed at Indian consumers. Founded in 2012, the firm has invested in more than 25 companies so far. Earlier this month, it invested in FabAlley’s $2 million Series A round.