Bengaluru-based B2B credit infrastructure fintechincreased $15 million (Rs 115 Crore) in Serie A led by A91 Partners along with the participation of Aditya Birla Ventures and Flipkart Ventures. Existing investors Arali Ventures also participated in the round.
According to the press statement, FinBox will use the funding to scale up and expand its offering into Southeast Asia. The company also announced that it will double its current workforce to accommodate its expansion.
This fundraiser will enable FinBox to disburse more than Rs 20,000 crore in credit by 2023 and will launch the fintech startup in various parts of Southeast Asia.
In the past 12 months, the company has seen its monthly revenue grow by more than 700 percent, even as its credit facility GMV grew more than 80x after launching its Embedded Finance platform in January 2021. With this financing, FinBox aims to increase the 10 million SMEs through formal credit through its selective partnerships with more than 50 banks, NBFCs and FinTechs, the company said.
Founded by Rajat Deshpande, Anant Deshpande, Nikhil Bhawsinka and Srijan Nagar† FinBox is a B2B credit risk management platform with proprietary data connectors that helps lend to independent merchants, non-banking financial firms (NBFCs) and new customers.
FinBox’s clients include ZestMoney, Khatabook, TrueBalance, Home Credit India, IIFL, major conglomerates, telcos, banks, NBFCs and other Fortune India 500 companies.
Speaking of the new development, Rajat Deshpande, CEO and Co-Founder, FinBox, stated,
“The future of financial services lies in the fact that every company and brand offers a curated offering to their own users in their own platforms and ecosystems. This not only improves trust, but also the speed of transactions and helps users get the financial products they want, wherever they want. We are making that possible by allowing any company, including fintechs, banks and conglomerates, to offer 100 percent digital products within days.”
Deshpande added that FinBox’s goal is to take the complexity out of financial services and make it easier to build and launch newer, more effective products without hard work.
Commenting on the investment, Kaushik Anand, Partner, A91 Partners, added,
“Financial services are moving from the physical buildings to the palms of the users. This requires credit and underlying value chains to be reimagined and built from the ground up for a digital-first era. FinBox is the most prominent player in the field of credit infrastructure in the region and we support the team to lead this transformation. FinBox is well placed to become the leading infrastructure player for banking-as-a-service internationally as well.”
Anant Deshpande, co-founder and head of data products, FinBox, stated: “Our data products, including our own scores, create instant trust between lenders and millions of borrowers, enabling us and our lenders to automate yet low-risk loan workflows for deeper financial inclusion. We We realized early on that responsible use of alternative data for underwriting could be a game-changer for lenders in India, where less than 50 percent of the eligible population is able to prove their creditworthiness and access credit.”
(This story was updated to correct that the company is only entering SEA)