Ever since India’s aggressive push towards digital financial services for the unbanked, there has been a tremendous growth in number of fintech startups looking to capitalise on the opportunity. One of them is Chennai, India based Neobank startup Kaleidofin. And Kaleidofin just announced fundraise to further its neobanking ambition.
The startup has secured ₹36 crore (~$5 Million) in a Series A round led by impact investment firm Oikocredit. The round also witnessed participation from existing investors Flourish, Omidyar Network India, Blume Ventures and Bharat Inclusion Seed Fund.
Kaleidofin partners with banks, mutual funds, and insurance firms to help the under-banked gain access to financial products. It uses technology to customise products by looking at data on demographic profiles, income sources, asset ownership, among others.
The startup claims to have over 50,000 customers spread across 10 states in India and works with nearly 30 network partners, including microfinance institutions, corporates, and non-governmental organisations.
Sucharita Mukherjee, cofounder and CEO of Kaleidofin, said: “At Kaleidofin, we have reimagined the way financial services are designed and accessed by the lower income groups. Our solutions take into account the financial roadblocks and vulnerability that these segments face, such as volatile income streams and limited understanding of the fine print in financial products.”
The investment also marks Oikocredit’s first equity investment in the Indian fintech sector. Commenting on the funding, Anirudh Sarda, Equity Officer at Oikocredit, said: “India is witnessing a transformational change in the way financial services are available and accessed, especially in the underbanked sector. We want to promote and be part of the responsible offering of savings and insurance products to the low-income segments of the population.”
The company was set up by Mukherjee and Puneet Gupta in 2017. Sucharita Mukherjee said that the company will use the funds to strengthen its technological infrastructure and improve growth opportunities. For this transaction, Unitus Capital acted as the exclusive financial adviser.
