[Funding alert] Xtracap Fintech raises $1 million in angel funding
Xtracap Fintech, the Gurugram-based startup, has raised $1 million in angel round of funding. The startup had launched its mobile app – Bridge2Capital in October 2018 for small shopkeepers to receive limited loan amount to pay their GST supplier bills.
According to this startup, since launch of the app, it has seen an overall customer increase from less than hundred to over 1,000 shopkeepers. It has crossed over 30,000 registrations across India.
Xtracap said it has managed Rs 70 crore worth of invoice financing providing credible financial integrity to small shopkeepers, under its limited geographical operations, in Rajasthan, Punjab, and Telangana.
The startup claimed that despite coronavirus outbreak, it has registered stable revenue generation. Xtracap’s app allows shopkeepers to choose their GST suppliers and releases funds to the suppliers for the invoices financed.
The startup plans to use this funding to offer new products and penetrate into newer markets.
Besides Bridge2Capital, Xtracap Fintech also has other offerings like QR based online payment solution, order management logistic payment solution, online insurance, digital gold saving scheme and digital ledger.
The startup expects its customer base to have access to all these services by March 2021.
Xtracap was also part of the incubation programme under Bharat Financial Inclusion managed by CIIE–IIMA. It also received certain grant funding from CIIE–IIMA.
The startup aims to target about two million retailers in a serviceable market of 14 million retailers covering 1,500 plus locations.
“With increase in digital adoption, this time period will shrink in the future due to the unprecedented COVID-19 situation,” said Xtracap founder Mohammed Riaz.
The startup also felt that given the background of mega investment deals announced by Reliance Jio from strategic investors such as Facebook, Silverlake Partners, General Atlantic and Vista Equity, the pace of digital adoption is set to increase in the country.