Finance technology startup PaySense, which runs a digital credit platform, has today announced that it has raised $5.3 million in its Series-A round. The funding round was led by Jungle Ventures with participation from Naspers Group and Nexus Venture Partners.
This is the second funding round raised by the company. Earlier, the startup had raised $2.3 million from Nexus Venture Partners and a few other angel investors back in 2015. This funding marks Singapore-based Jungle Ventures’ first investment in a consumer lending startup in India.
The funding raised by the company will be used to expand its team. It will also spend money on improving its technology. While the company is currently operating in nine cities, it plans to expand its offerings to other Indian cities in the coming weeks. Speaking on this, Sayali Karanjkar, co-founder of the company, said,
We will use the new funds to invest in our technology and also to expand our team. We also plan to take our product to more cities than the nine where we currently operate in.
Amit Anand, founder of the venture capital firm Jungle Ventures, said,
We have been interested in fintech in India and southeast Asia. There are especially white spaces in India when it comes to financial products. PaySense’s team has shown good understanding of the space and execution so far.
Anup Gupta, MD of Nexus Venture Partners, said,
Financial services in India are still largely untapped, and people with good credit are also unable to get loans. PaySense has a team with capability in data sciences skills and underwriting skills, which understands these customers.
PaySense founded in 2015 by Prashanth Ranganathan and Sayali Karanjkar, offers individuals, such as working professionals, credit options ranging from ₹5,000 to ₹1 lakhs and does the credit scoring, as well as the documentation processes by leveraging the India Stack. It claims to have 180,000 users and has disbursed loans worth nearly ₹30 crores in partnership with a non-banking financial company (NBFC).