Bengaluru-based digital lending startup MoneyOnClick has raised ₹15 crores ($2.15 million) in seed funding from venture capital firms Kalaari Capital, 3one4 Capital and Orios Venture Partners. The startup will use the freshly raised capital to strengthen its core technology and introduce a machine-learning based credit underwriting and risk assessment platform.
Founded by ex-LendingKart employees Vishal Chopra and Himanshu Gupta, the startup provide unsecured loans to the underserved customers. The startup is currently in stealth mode. Using the proprietary credit scoring mechanism, the startup aims to provide unsecured personal loans to Tier 2 and Tier 3 customers while keeping very low default rates.
Some of the major players in the digital lending space include LoanTap, Aye Finance, ZestMoney, i2iFunding and several others. There is also a lot of peer-to-peer lending startups that are disrupting the fintech sector.
“This fintech business is addressing a large gap in the lending space in India that goes beyond Tier-1 cities. Indian retail lending is expected to touch $1.3 trillion by 2025 and unsecured personal loans are expected to be around $200 billion. MoneyOn-Click will disrupt this space with their unique go-to-market strategy and use of technology” said Anup Jain, managing partner at Orios.
Fintech startups grabbed ₹9,800 crores in funding across 121 deals last year. The retail lending industry in India is expected to touch $1.3 trillion by 2025 and unsecured personal loans will contribute $200 billion.