[Funding alert] Mumbai-based fintech startup ftcash raises Rs 50 Cr from Accion, FMO, and IvyCap Ventures
The company said it will be using the new round of funding to accelerate product development and expand into new geographies.Tarush Bhalla
Mumbai-based fintech startup, ftcash, on Thursday said it has raised Rs 50 crore as a part of its Series A funding round, led by global non-profit Accion and the Dutch development bank FMO. The round also saw participation from exisiting investor IvyCap Ventures.
The company said in a statement that it will be using the new round of funding to accelerate product development and to expand to newer geographies.
Founded in 2015 by Sanjeev Chandak, Deepak Kothari, and Vaibhav Lodha, ftcash provides cash advances to micro merchants, and has delivered financial services to over 30,000 merchants.
ftcash was incubated by PayPal and was also a part of the six teams selected globally for the Mastercard StartPath Program.
Sanjeev said he took inspiration for ftcash from the large potential of MSMEs and their role in growth of the economy, which was evident from his days at Deutsche Bank and Capital One.
Speaking on the investment, Sanjeev Chandak, Co-founder and CEO, ftcash, added,
"By using transaction data for credit assessment and leveraging repayments from the ftcash payments platform, ftcash is pioneering a model that can reach 60+ million micro-merchants in India, 96 percent of whom have been underserved by banks and traditional finance companies.”
ftcash uses a proprietary algorithm to analyse payments and alternative data for originating loans and deducts collections directly from the merchants’ digital payments.
Additionally, ftcash matches merchants’ digital cash flows to credit due dates, increasing the chances of on-time loan payments.
“The innovative proposition of ftcash is stimulating small and micro entrepreneurship development and financial inclusion in India. FMO is very pleased to support economic development globally by catalysing the establishment of more stable and inclusive financial systems in emerging and frontier markets,” said Ronald Janse, Manager, Private Equity at FMO.
“Our investment in ftcash represents an opportunity for Accion to continue its work helping financial services platforms leverage partnerships, technology, and data to increase financial inclusion for micro merchants in India,” said Radhika Shroff, Deputy Chief Investment Officer of Accion Global Investments.
In addition to the investment, Accion is providing advisory services to help ftcash scale its current business and develop new product lines and business models.
“There is tremendous potential in the small and micro lending segment, and ftcash is well-positioned to be a leading player, with its proprietary algorithm and end-to-end customer relationship. We look forward to working closely with the new partners to scale the company to its new heights," said Vikram Gupta, Founder and Managing Partner, IvyCap Ventures.
This week, Mumbai-based NBFC InCred, which offers loans to businesses as well as consumers, alsoraised Rs 600 crore in its Series A funding round. The investment was also led by Dutch development finance institution, FMO.
Tarush is driven towards delivering unbiased and accurate reportage while engaging with as many mediums as possible to narrate a fresh perspective. Working for the past few years in the digital space with YourStory, he has covered the Indian technology ecosystem extensively, focusing on new age Fintech companies, while building strong connects within the industry.