Delhi-based lending startup Cash Suvidha raises $2.5 M in debt funding
Delhi-based fintech startup Cash Suvidha, which extends business loans, said on Tuesday that it had raised debt of $2.5 million, of which $1.5 million was through private placement of Non-Convertible Debentures, and $1 million was raised from two financial institutions.
According to a company statement, the debt will be used to increase the company's loan book.
This isn’t the first debt funding for the company. In December 2017, it had raised a debt of $2.7 million from six financial institutions.
Founded in 2016, the company provides a variety of loans, and the funds raised will be primarily used to facilitate further lending to SMEs and to cater to individuals' loan needs, particularly in Delhi NCR, Bengaluru, Pune, Hyderabad, Mumbai, and Rajasthan.
The company extends business loans to SMEs, MSMEs, and women entrepreneurs, and gives personal loans to individuals. Further, it also deals with women empowerment on a micro level.
Commenting on the debt raise, Rajesh Gupta, Founder of Cash Suvidha, said,
“This capital infusion will provide impetus for further accelerating the company’s exciting growth plans. The influx of funds will enable us to replenish our loan books, and will allow us to cater to a wider range of SMEs across the country. With our aim to provide easy access to credit and working capital to SMEs, 80 percent of our loans are targeted towards SME sector in India.”
The lending startup claims it receives around 15,000 loan applications per month and has disbursed a total of Rs 122 crore since its inception.
Within a year of its operations, the company has tied up with over 14 to 15 players to expand business across India, and has targeted a 5x increase in processing loan applications. In terms of future plans, Cash Suvidha is targeting more tie-ups for business expansion.
Since its inception, Cash Suvidha has disbursed to more than 30,000 borrowers, with an average loan size from Rs 20,000 to Rs 5,00,000.
