Qbera, an online lending startup, has raised $3 million in a fresh round of funding from lead investor E-City Ventures, a subsidiary of Essel Group. Founded by Aditya Kumar and Anubhav Jain in 2015, Qbera offers digital, quick, hassle-free personal loans to people when they need them.
The startup plans to utilize the capital to ramp up its technologies and improve its analytical capabilities. Qbera will use the fresh funds to expand the team across various functions, scale up its business model and increase presence in more geographical areas of the country. Qbera plans to startup operations in Patna, Chandigarh, Indore, and Bhopal. Currently, it operates in eight cities including Bangalore, Chennai, Delhi, Hyderabad and Mumbai.
This funding by Essel Group can be seen as a huge milestone for Qbera and will help it to bolster its position as one of the best alternative digital lending platforms in India. Qbera provides diverse lending solutions for salaried professionals across various geographical areas and segments.
Aditya Kumar, founder and CEO of Qbera, speaks, “We are thankful to the entire team at E-City Ventures, whose faith in our vision will undoubtedly help us in collectively achieving our goals, especially as an integral part of the financial services ecosystem which they are building.”
The fresh capital will help Qbera accelerate its business operations and work towards establishing them as a leader in the digital lending sector. The whole team of Qbera is very excited about the investment and promises to work hard to serve customers in a better fashion.
With an annualised run rate of Rs 100 crore of loan disbursals, and delinquencies of less than 1 per cent, Qbera aims to extend loans worth Rs 400 crore by the end of FY 2019-20, said the company’s press statement.
The interest rate of loan varies between 10.99 per cent to 20 per cent. Further, it plans to offer loan products of smaller ticket size for shorter durations and also eventually target self-employed borrowers. As of August 2018, the company has processed over 2,00,000 applications and disbursed loans worth more than Rs 50 crore.
Qbera offers credit products co-created by its partner banks through its managed marketplace leveraging the advanced technologies for acquisition, underwriting and loan processing. Banks share some of the risks in a hybrid lending model with Qbera. RBL bank, IndusInd bank and IIFL are some of the lenders to meet loan requirements of the target group.
Earlier this month, the lending platform for gig workers Bon raised $1 Mn seed funding. Another startup Olly Credit also raised funds from China-based investor JadeValue. Also, PayU starts its lending and credit business after getting an NBFC license from RBI. So far the Bengaluru-based startup has raised about $1.5 million and it competes with EarlySalary, IndiaLends, MoneyTap, and PaySense, among others.