Online lending platform Ziploan has raised $3 million in a Series A round of funding led by Matrix Partners India. The funding round also saw participation from its existing pre-series investor WaterBridge Ventures, Whiteboard Capital and former Capital18 MD, Sarbvir Singh.
Delhi-based Ziploan is an MSME lending platform which is now planning to utilise the freshly raised funds to expand geographically, targeting non-metro cities. With the funds in hands, it will also increase its loan book size.
Talking about the investment, Matrix Partners India MD Vikram Vaidyanathan said, “With over 40 Mn SMEs, SME-lending is a large opportunity, but with tough execution challenges. We believe a cautious, technology-led approach can bring down underwriting and sourcing costs enough to serve the SMEs at smaller ticket sizes.”
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Earlier in June, the lending startup raised an amount of $650,000 from WaterBridge Ventures in which $500,000 was in equity and the remaining as debt capital.
The startup offers loans of Rs 1 lakh to Rs 5 lakh over a period of 6-24 months. The firm has developed an automated credit engine called ZipScore which helps it assess the creditworthiness of prospective customers within a few minutes, it claims.