[Funding alert] BankBazaar raises Rs 29 Cr from Amazon, Sequoia Capital, others
Chennai-based online financial services marketplace BankBazaar has raised Rs 29 crore as part of its ongoing Series D round from existing investors, including Amazon, Sequoia, and Walden SKT Venture Fund, according to the RoC filings accessed by YourStory.
As per the filings, BankBazaar has issued 12,337 Series D1 Compulsorily Convertible Preference Shares at an issue price of Rs 4,611.2 per share to Amazon, amounting to Rs 5.68 crore. Walden SKT Venture Fund has pumped in Rs 7.1 crore, while Sequoia has infused Rs 2.6 crore into the startup.
The funding comes more than two and a half years after the global credit rating agency Experian had led a $30 million financing round into the startup. So far, it has raised a total funding of more than $110 million.
Founded in 2008 by Adhil Shetty, Arjun Shetty, and Rati Shetty, BankBazaar is an online marketplace which gives customers instant customised offers on loans and credit cards. It also provides free consumer credit score on its portal and has partnered with over 50 financial institutions in the country.
In February, BankBazaar said that it had witnessed a 100 percent increase in organic traffic, which drove the total registered customer base to more than 40 million users. It also said that it expects to reach an EBITDA-profitability basis in March 2020. The startup also registered a 46 percent increase in monthly revenue and a 17 percent reduction in costs.
BankBazaar competes with the likes of SoftBank-backed PolicyBazaar and Accel-backed Coverfox.
In November 2019, PolicyBazaar raised close to $150 million in funding from Chinese technology conglomerate Tencent Holdings Pvt Ltd, at a valuation little more than $1.5 billion.
In July last year, Coverfox had received Rs 40 crore ($5.79 million) capital infusion from its existing investors International Finance Corporation, Aegon Digital Investments, Transamerica Ventures, Accel India, and SAIF Partners as part of its ongoing Series C funding round. With this investment, the total funding raised by Coverfox reached $58.59 million.
(Edited by Suman Singh)
Edited by Suman Singh