Finomena, a fin-tech startup that determines a user’s credit worthiness through big data analytics, has raised an undisclosed amount in funding led by VC firm Matrix Partners India.
Kaushal Aggarwal (co-founder and MD of Avendus Capital) and Harshvardhan Chamria (head – SME unsecured loans of Magma Fincorp Ltd) also participated in this round, it said in a statement.
Finomena, run by 8Finatics Pvt Ltd, uses alternate data sources and proprietary algorithms to evaluate credit worthiness of college students and young working professionals. The platform allows individuals to buy aspirational goods online by subscribing to various financing options.
The startup was founded last year by Riddhi Mittal and Abhishek Garg. Mittal is an alumnus of Stanford University who has earlier worked with companies such as Mircrosoft and Aria Buildcon. Garg is from IIT Delhi and has previously worked with Bain, Boston Consulting Group and UBS Investment Bank.
The fin-tech space has witnessed a lot of investments lately. Last month, Buddy, an online micro-lending startup that supports students with loans for e-shopping, has raised $500,000 in pre-Series A funding from Blume Ventures with participation from Tracxn Labs. Digital lending platform Capzest recently raised $200,000 (around Rs 1.4 crore) in seed funding led by Lion Ventures last month.
Finectar Technologies Pvt Ltd, which runs online lending marketplace KountMoney, had raised an undisclosed amount in seed funding from Suashish Diamonds Ltd’s CMD Ashish Goenka and other investors through angel network Tracxn Syndicate in November 2015.
Matrix Partners India is a VC firm with about Rs 4,000 crore ($600 million) in assets under management. Previously, it invested in companies such as Dailyhunt, Five Star, Housejoy, LimeRoad, Mswipe, Ola, Practo, Quikr and Stayzilla. Most recently, it invested $5 million in OfBusiness, an online marketplace for B2B commerce.