Digital Payment Firm Paytm is all set to invest $5-10 million (roughly Rs.33.5-67 crore) in a Mumbai headquartered digital lending startup CreditMate, for the second time in a round of funding after it infused an undisclosed sum in late 2017.
Though CreditMate chief executive officer Jonathan Bill has refused to give any confirmation on the proposed funding but said that the company has witnessed a 40% month-on-month growth in terms of the number of loans disbursed.
He further said,
The first 12 to 18 months have been very well in terms of business and we have managed to restrict repayment failures to less than 1%. More than 60% of our customers are new to credit and more than 50% are self-employed. Hence we use technology to assess the borrower.
The startup is a fintech focussed secure lending platform that caters particularly to second-hand two-wheeler buyers.
Furthermore, with Paytm backing the startup, CreditMate is expected to venture into the field of automobile insurance. Notably, it has already disbursed 10,000 loans after having received 15,000 applications and at the same time has started financing new vehicles.
CreditMate assesses the customer asset (Two-wheeler) using proprietary credit and valuation engines. It works in collaboration with lending partners for whom it provides a credit recommendation and an online access to complete digital borrower and asset profile to facilitate secure and fast lending.