[Funding alert] Fintech startup Cash Suvidha raises $2.3M in debt funding in the first quarter of FY20
New Delhi-based fintech lending startup Cash Suvidha on Tuesday said that it has raised $2.3 million in debt across the first quarter of FY 2019-20 (between April and June this year).
The funds were raised through private placement on non-convertible debentures and from various financial institutions, the startup informed in a statement.
Cash Suvidha will use the debt to facilitate further lending to SMEs and MSMEs as well as individuals, which will increase the loan books of the company. During the last financial year, Cash Suvidha raised a total debt of $10.25 million from various financial institutions.
Founded in 2016, Cash Suvidha provides a variety of loans and business loans to small and medium businesses as well as personal loans, particularly in geographies of Delhi NCR, Bengaluru, Pune, Hyderabad, Mumbai, and Rajasthan.
Commenting on the fund raise, Geeta Goswami, Co-founder, Cash Suvidha, said,
“We are expanding the horizon of financial inclusion for SMEs and MSMEs in India. Cash Suvidha’s financial performance has been strong since inception and we are glad to have significantly captured the market in just four years. This capital infusion will allow us to further accelerate our fast-growing lending platform and enhance our ability to provide the best terms to borrowers that do not have an established credit history.”
At present, 70-75 percent of Cash Suvidha’s loan books comprise credit given to SMEs and MSMEs. Catering to this segment, the company provides loans with a ticket size of Rs 50,000- Rs 5 lakh for SMEs and Rs 15,000-Rs 50,000 for MSMEs.
In addition to this, the company has tied up with over 25-30 players to expand business across India. Since inception, Cash Suvidha has disbursed loans to more than 49,000 SMEs & MSMEs borrowers.
In February, last year, the startup 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.
(Edited by Evelyn Ratnakumar)