[Funding alert] OkCredit raises another $67M from Tiger Global, Lightspeed
Just three months after raising $15.5 million as a part of its Series A round, Bengaluru-based fintech startup, OkCredit on Friday said it has raised $67 million as part of its Series B fund raise from Lightspeed (India and US) as well as Tiger Global.
This round takes OkCredit’s total fund raise over the last three months to $83 million.
Founders of OkCredit (L to R): Harsh Pokharna, Gaurav Kumar and Aditya Prasad
Started in 2017, OkCredit is an app-based solution, which provides merchants with simple and reliable means of keeping credit and payments records for their businesses carried out on credit basis by recording them digitally.
According to the startup, in India, most purchases at neighborhood grocery stores are made on credit in which the store owner sends one of his employees to collect payments at the customers’ doorsteps or during one of their regular visits to the store. And in spite of proliferation of digital payment instruments and POS machines, the fact that most customers still purchase goods on credit recorded in a notebook hasn’t changed in India.
Speaking on the fund raise, Harsha Kumar, Partner, Lightspeed India, said,
“Lightspeed has been investing in the SME segment in India for years now and we deeply appreciate how complex user acquisition is for this segment. OkCredit represents a rare breed of companies that are discovering digital and viral growth in a market where traditionally, feet-on-street was the only acquisition strategy. We are fortunate to witness this transition along with a team that is deeply connected to its customers and is solving with a first principles approach to product development.”
Lightspeed had also made an initial seed investment in the company.
Currently, the founders claim that OkCredit has a registered base of 7 million merchants. The startup claims to be witnessing nearly 4 million monthly active sessions on the app in the recent months.
This is a considerable growth since June when the startup had a download base of 1.3 million merchants, 900,000 of which were monthly active merchants, then.
(Edited by Megha Reddy)