SmartCoin, India’s app-based consumer lending startup, has secured more than $7 million in funding. The Series A round was led by LGT LightstoneAspada and existing investors Unicorn India Ventures and Accion Venture Lab.
The company launched in 2017 with the goal of providing access to credit to people underserved by the formal banking system. Its product offering includes small ticket personal loans to micro merchants, self-employed and salaried individuals.
Rohit Garg, co-founder and CEO, said:
“Our choice to build for the credit-starved mass market and strong portfolio performance has helped SmartCoin stand out in a crowded fin-tech market. We are delighted to have LGT LightstoneAspada come on-board alongside our other investors given their experience in financial services and focus on impact.”
Garg said that SmartCoin’s machine learning-powered risk assessment engine provides credit through a completely automated process, adding that deeper insights into customers’ financial and behavioural data will mean unlocking better products over time.
Kartik Srivatsa, managing partner at LGT LightstoneAspada, added:
“The company has already built the foundations of what could be one of the important fintech platforms in India that delivers personalized financing products at an affordable cost to underserved households towards their goal to building positive financial net worth.
“We believe that their AI/ML engine can over a period of time also deliver personalized digital services in areas such as education and healthcare for this segment.”
SmartCoin plans to use the fresh funding to grow its loan book, expand its data science team and advance its AI-based underwriting platform. It will also launch new products and grow its existing user base to 10 million.
Since launching, SmartCoin claims to have offered loans to half a million customers and currently boasts a user base of over five million.