Indian lending app Smartcoin secures over $7m in series A funding

Smartcoin, a startup that provides small-ticket personal loans to India’s micro merchants, self-employed, and salaried individuals, has secured over US$7 million in its series A raise.

The round was led by LGT Lightstone Aspada and included participation from existing investors Unicorn India Ventures and Accion Venture Lab, according to a statement.

Photo credit: Senorset Jahnsen

Smartcoin runs a credit-underwriting algorithm that puts together a number of data points to build the risk profile of a prospective borrower and offer loan products that match.

The startup’s co-founder and CEO, Rohit Garg, said that the company’s goal has been to support India’s “credit-starved” lower- and middle-income segments. “Deeper insights into the customer’s financial and behavioral data, combined with a gamified ladder, enables unlocking better products over time,” he added.

The company plans to use the new funds to grow its loan book, expand its data science team, and grow its user base. Smartcoin also looks to use part of the funds to strengthen its AI and machine learning-based underwriting platform and launch new offerings.

The microlender began operations three years ago, offering loans to those who mainly borrow to fund their economic advancement. Since then, the startup said it has scaled up to serve about half a million customers across all the states and over 95% districts of India.

In 2017, the company raised an undisclosed amount of investment led by Unicorn India Ventures.