Aadventure Infotech Pvt. Ltd, which operates small-ticket loans-based financial technology firm LoanAdda, has raised funding from ah! Ventures, the Mumbai-based investment manager and platform.
PRAAK Investments and Ahmedabad-based Ratnaafin Group also participated in the funding round, ah! Ventures said in a statement.
ah! Ventures invested through its High Tables platform but didn’t disclose the amount.
LoanAdda, founded in 2015 by Anshuman Mishra, says it lends to the thin file segment. It also operates a proprietary underwriting software, LoanSwift, and maintains an end-to-end solution of lead origination, credit underwriting and collections through a bundle of application programming interfaces (APIs).
The Noida-based company will use the capital for enhancing its technology and data infrastructure, and scale up its lending volumes and acquiring talent.
“As a provider of digital lending, it [LoanAdda] is very well placed to benefit from the continuing adoption of digital finance channels by Indian households and companies,” Mishra said.
The firm was the largest distribution platform for unsecured loans in Tier-II and Tier-III towns, he added.
Separately, ah! Ventures partner Amit Kumar said the firm was confident of its investment in LoanAdda because of the founding team’s managerial capability and the potential of the larger unsecured lending segment.
The company claims that LoanSwift’s approach of analysing diverse data points in building a client profile has led to better credit decisions and low non-performing asset (NPA) ratios.
The bet on LoanAdda also marks the fifty-sixth investment for ah! Ventures, the firm said in its statement. It operates platform – an angel platform that helps companies raise up to $1 million, and High Tables, which helps startups raise between $1-$10 million.
The firm claims it has over 2,000 seed and angel investors, and more than 1,000 venture capital and institutional investors registered with it. Investments across both platforms have touched nearly Rs 170 crore and have also struck at least six exits.
Deals in the fintech segment
Earlier this week, merchants payment platform Mintoak Innovations Pvt. Ltd raised $2 million (around Rs 15.14 crore) in a pre-Series A funding round. The round in the Mumbai-based Mintoak was led by Pravega Ventures and other undisclosed existing backers.
Last month, payments infrastructure platform YAP announced a $4.5 million (around Rs 34.62 crore) fundraise, barely two months after its angel funding round. The exercise was led by Singapore-based Beenext, with participation from 8i Ventures Fund, the DMI Group via its investment vehicle Sparkle Fund, and Better Capital.
Entellus Business Solutions Pvt. Ltd, which operates enterprise-focussed neo-banking platform Nupay, raised funding in a seed investment round led by startup incubator and accelerator Venture Catalysts in January.