[Funding alert] Fintech startup HappyCredit raises Rs 5 Cr in pre-seed round

Bengaluru-based fintech startup HappyCredit, an instant cashback rewards application, has raised Rs 5 crore in a pre-seed round to accelerate its growth.

The funding round saw participation from Kunal Shah (Founder and CEO, CRED), Krishna Kumar (Founder and CEO, Simplilearn), as well as US and Canada based investors like Goodwater Capital, Magic Fund, MyAsiaVC, Alex Lin (CEO, Outlier), Jeremy Cai (CEO, Italic), Chris Ye (CEO, Uken Games), Saad Siddiqui (CEO, Bonsai), Andrew Ladouceur (COO, Bonsai), Charlie Feng (Co-founder, Clearco), among others.

The fresh funds will be used to launch new products, build talent and enhance the startup's growth. 

Founded by Jitendra Kumar and Ashish Virmani in October 2020, HappyCredit is a one-stop online shopping app that offers shoppers rewards, credit, and shopping inspiration. For making rewards on shopping delightful, the startup has launched its rewards product 'Aishback' in the market earlier this year.

Aishback is a superior form of usual cashback rewards because it's instant and can be transferred to the bank directly. 

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Jitendra Kumar, Co-founder, HappyCredit, said,

"The ecommerce market is dynamic and has been increasingly becoming the preferred mode of shopping amongst consumers across urban and rural India. We wanted to provide consumers with a one-stop shopping destination wherein they are rewarded for making a purchase. The new funding will help scale up our business and reach a bigger Bharat audience." 

"Cashback and rewards are a significant part of the e-commerce ecosystem, and with HappyCredit, we want to make the process a seamless affair. In the coming months, we are looking at launching a checkout finance product as well,” added Ashish Virmani, Co-founder, HappyCredit.

Currently, the HappyCredit app claims to have 50+ ecommerce merchant brands on its platform, such as Flipkart, Myntra, Ajio, Mamaearth, to name a few. The app has also received over 50,000 downloads on the Google Play store.

The startup is planning to launch new credit products, scale the user base to 1.5 million in the next 12 months, and also expand its platform to offline retailers.

“The Indian ecommerce industry is poised for growth with strong young demography, increasing internet and smartphone penetration. We are excited about HappyCredit’s potential at the intersection of ecommerce, rewards and credit, and the strength of the founding team,” said Vivek Subramanian, Partner, Goodwater Capital.