IBEF: March 02, 2020
SMEcorner, which lends to micro, small and medium enterprises (MSMEs), has raised US$ 30 million through a mix of equity and debt, said a senior company executive.
Mr Samir Bhatia, founder and chief executive of SMEcorner, said that this funding marked the close of its Series B funding round which was led by private equity firm Paragon Partners with an investment of US$ 10.5 million.
The company plans to utilise these funds in its expansion.
He said, “The additional capital will enable us to reach over 20,000 new customers, while our total loan disbursements could go up to Rs 1,500 crore (US$ 214.62 million) by the end of this financial year".
Mr Bhatia and existing investors such as Quona Capital, Accion Venture Lab and some high net-worth individuals took part in the funding round.
The Mumbai-based non-banking financial company (NBFC), owned and operated by Digikredit Finance Pvt. Ltd, began operations in 2015 as an online marketplace for SMEs that connected them to more than 30 institutional lenders. After receiving NBFC license from the Reserve Bank of India, the company started its own lending operations from February 2018.
The company offers small unsecured business loans to shopkeepers, which form nearly two-thirds of its customer base. Currently, it has presence in 15 cities, including Mumbai, Pune and Delhi and has served more than 8,500 customers so far, while disbursing loans in excess of Rs 550 crore (US$ 78.70 million) with assets under management (AUM) of Rs 400 crore (US$ 57.23 million).
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