Delhi-based early-stage startup Olly Credit, which offers loans to salaried individuals through instant microcredit cards, has raised an undisclosed amount in a pre-Series A funding round from China-headquartered fintech incubator and investor JadeValue, and Mumbai-based Lead Angels Network. It plans to use the funds to introduce credit card loans for students.
Olly Credit, an early-stage startup which offers credit facilities to salaried professionals through instant microcredit cards, has raised an undisclosed amount of funding from China-based fintech incubator and investor JadeValue. Mumbai-based Lead Angels Network also invested along with JadeValue.
The Delhi-based company plans to use the funds to introduce loans and microcredit cards for college and university students. The startup was founded by Anand Kumar, Ashwin Bhambri and Ringaile Noq in 2015. Earlier in 2017, the company raised an undisclosed amount in a Seed round led by Japan’s Incubate Fund. Several angel investors participated int he round.
Olly Credit runs on a B2B2C user-acquisition model and has boarded more than 40 corporate clients. The startup provides credit cards to salaried individuals with a credit limit of up to Rs 20,000. The company claims to provide the credit within three minutes after the user submits the details and documents on the app.
This fundraising will allow Olly Credit to launch its latest product called Student Expense Cards. The startup will be introducing the product for the engineering students of Maharana Pratap Group Institutions in Kanpur. Partnership with Olly Credit complements the university’s cashless campus programme, an official from the Pratap University confess.
Jade Value marks its first investment in India by investing in Olly Credit. The capital firm will be working closely with Olly Credit to help them build a state of the art digital underwriting system, Johan Uddman, general manager of the capital firm said.
With startups like Slicepay and KrazyBee, university campuses in India are already popularising the cashless credit campuses in a bid to provide students with money to fulfil there needs. Students have availed loans across the country to pay for food, transport and other services on the campus.
Startups are also focusing on QR code based cashless payment systems for various university campuses. Wallet giant Paytm provides similar solutions to campuses of IIT Kanpur, IIM Ahmedabad, IIT Madra, and Shree Ram College of Commerce. HDFC owned Chillar is one of the major players in this market.
India’s fintech market is estimated to touch $2.4 Bn by 2020, as per a Nasscom report. With the fundraiser, Olly Credit will enhance India’s credit card penetration by entering the country’s most thriving market. The startup aims to raise Series A round of funding later this year.