Mumbai-based digital lending company PaySense has reportedly raised an amount of $18 million in its Series B funding round. This particular round was led by PayU.
The funding round also saw the participation of existing investors including Jungle Ventures and Nexus Venture Partners. PayU had also participated in the Series A round, and this time it invested $11.5 million.
PaySense has hit the milestone of Rs 50 crore monthly disbursement rate already, and with these funds, it is targeting to make it double within the next few months. Along with this, the company is also planning to use the amount to hire more people to strengthen its tech and data analytics team.
“PaySense is leveraging the IndiaStack platform very well to create additional capabilities beyond those of the traditional credit bureaus to generate strong underwriting of retail loans,” said Siddhartha Jajodia, global business head for credit at PayU. “With these investments, we intend to tap into the emerging middle class of India and provide them with easy access to formal credit.”
Founded by Ranganathan and Sayali Karanjkar, Paysense is a technology and data science company and a lending platform which provides loans to customers who might not have a credit card and would require instant credit. However, the company does not lend from its own book and depends on non-banking finance firm ‘India Infoline’ which is its lending partner.
This is PayU’s second big investment in the digital lending space in the country, the earlier one was in Zest Money which a consumer check out financing startup. PayU also invested lately in German startup Kreditech.
“We are constantly innovating to serve this population using net new ways of assessing these customers through our instant credit decisioning models. We enable access to a wide array of customized credit products that serve their life’s needs – whether its aspirational e-commerce purchases, family vacations, home renovations or a medical emergency,” said Prashanth Ranganathan, the chief executive officer at PaySense.
PaySense had first raised $2.3 million three years back in 2015 from Nexus Venture Partners and few angel investors. In 2017, the company had raised its Series A round of $5.3 million led by Jungle Ventures. And now, with this round, it is on the path to growth.