Digital lending startup Happy Loans raises $20 Million to strengthen its Micro enterprise loan offering
Happy Loans has raised $20 Million in an equity and debt funding round.
Happy Loans offers short-term loans between INR 1 lakh to INR 10 lakh at an interest rate of 2% per month.
In 2018 fintech startups raised $1.4 Billion across 121 deals in the year.
Happy Loans a Mumbai-based digital lending startup has raised $20 Million in an equity and debt funding round. The funding round includes a mix of financing lines from institutions including DMI Finance and equity from Indian and US strategic investors.
Happy Loans plans to use funds to strengthening the back-end capabilities to enhance its evaluation of customers and determine their creditworthiness and improve the experience of customers.
Happy Loans came into action in 2016 by Gautam Ivatury, Manish Khera and Shweta Aprameya. The startup offers working capital loans to micro-enterprises. It caters to merchants who have less than five employees and extend short-term loans between INR 1 lakh to INR 10 lakh. The company charges an interest rate of 2% per month.
Since the past two years of its execution, it has disbursed over $20 million (INR 140 crore) through over 32,000 loans to more than 80 different kinds of businesses. It offers 30-90 days loans and also brought a new category of weekend loans. According to Economic Times reports the startup claims to have less than 5% non-performing asset level. It has been noted that in 2018 fintech startups raised $1.4 Billion across 121 deals in the year with top-five funding grossers being ClearTax, PolicyBazaar, Phoneme, LendingKart, and Pine Labs. A list recently occurred fundings in this domain include:
- Bengaluru-based digital lending startup ZestMoney raised $20 Main a fresh funding round led by Washington DC-headquartered fintech investor Quona Capital.
- Pune-based online lending startup LoanTap raised $8 Mn (INR 57.9 Cr) from a combination of debt and equity for its fifth funding round which was led by early-stage venture capital fund 3one4 Capital.
- Mumbai-based digital lending startup InCred closed its Series A round at $85.89 Mn (INR 600 Cr). The funding round was led by Dutch development finance institution FMO with participation from US-based asset manager Moore Capital, India/Latin America-focused PE fund Elevar, and Alpha Capital.
- Fintech lending company Aye Finance raised $10 Mn (INR 71.32 Cr) in a debt funding round from global impact investment manager, responsibility and Northern Arc, through the issuance of non-convertible debentures.
- Bengaluru-based full-stack consumer lending company Credy raised an undisclosed amount in a Pre-Series A round of funding.
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