Mumbai-based Personal loans offering venture Paysense Services India Pvt. Ltd has raised $5.3 million (Rs 34 crore) in Series A funding round which was led by Singapore-based venture capital firm Jungle Ventures. The round saw the participation from Naspers Group and Nexus Venture Partners.
On the investment, Amit Anand, founder of Jungle Ventures, said:
We have patiently been looking at this space in India. There are going to be a few mega companies being formed in this space
Founded in 2015 by Ranganathan and Sayali Karanjkar, PaySense is a technology and data science company building new age financial products for Indian consumers. The company’s first product is a simple, fast and flexible credit platform that provides customers a variety of credit options for their needs.
PaySense EMI is a personalized line of credit similar to a personal loan that can be used to make any purchase, offline or online, instantaneously by putting it on an affordable EMI plan. It is set-up and operated very easily and seamlessly using the Android app or website. One can use the full credit amount available at one time for a big purchase or flexibly use it like a string of multiple EMIs for various smaller purchases, as needed by the consumer.
Commenting on the company, Prashanth Ranganathan, Co-Founder and CEO of PaySense said:
India is a young country and lots of people are just starting off building their professional lives. They might not have a credit score and they might not have enrolled for a credit card yet! Access to credit is fundamental to unlocking opportunities of growth and improving oneself. Today access to convenient and flexible credit is limited to a few fortunate folks.
Further adding to that, he said:
With the explosion of data on individuals, better access and most importantly with our ability to make sense of these large volumes of data real-time, we can level the playing field in credit. Giving credit to folks who already have history is easy, our mission is to DEMOCRATIZE credit by making it just as easy for folks without history and without paperwork.
Adding to that, Sayali Karanjkar, Co-Founder and COO, said:
With respect to credit, India is a severely under-served market. Our research indicates that there is a rising demand for short-term flexible credit across the middle class aspirational youth. People need ready access to short-term, flexible and quick credit solutions for a variety of needs that improve their life and satisfy their aspirations. We are building PaySense to become a trusted financial partner to our consumers, we don’t just want to serve them once, we want to become their go-to solution for all their financial needs
The availability of this solution is useful even for those customers who do not have a credit rating based on no prior history. The company believes that they should be respected as well for their education and employment and given a chance to take EMIs, get the products they want and start their credit history too.
The company will use the funds to advance its technology infrastructure and expand its data science and technology team. The company is also planning to enter Tier 2 cities. Currently, the startup operates in nine major cities including Mumbai, Delhi NCR, Bangalore and Chennai.