The most recent funding is led by new investor WSV with particpation from company’s existing investors, including Amazon, Sequoia India, Experian, and Eight Roads
Online financial services marketplace BankBazaar has raised INR 45 crore within its ongoing series D funding round. The most recent funding is led by new investor WSV-a jv fund of Walden International and Korean company SKTA-with participation from a clutch of company’s existing investors, including Amazon, Sequoia India, Experian, and Eight Roads.
According to a written report published in April by digital media platform Entrackr, Bankbazaar had raised INR 29 crore from Amazon and other investors “The D1 round was done in multiple tranches and the most recent capital infusion may be the first official announcement from the business,” Adhil Shetty, CEO, Bankbazaar told Entrepreneur India .
Founded in 2008 by Adhil together with his brother Arjun Shetty and Rati Shetty, Arjun’s wife, Bankbazaar can be an online marketplace for retail loans, bank cards and investment products like mutual funds, fixed deposits etc. In addition, it provides customers their credit history free of charge. Over 50 finance institutions have collaborated with the business to market their products.
Bankbazaar plans to deploy the new capital for accelerating the delivery of its contactless personal finance products and business expansion in India. “In the post-COVID-19 world, the demand for contactless finance will probably grow exponentially, which round of funding can help us accelerate our plans to implement contactless usage of credit,” Shetty said in a company statement.
The Chennai-based startup had last raised INR 191 crore in October 2017 from Experian.
Bankbazaar claims that between October 2019 and February 2020, it saw a 90 % upsurge in monthly organic traffic and a 53 % upsurge in monthly revenue. Shetty is confident these numbers are only likely to rise in the coming months as a result of upsurge in demand for digital financial loans as a result of Covid-19.
“We’ve seen that in both months of lockdown (April and could) more progress was made on contactless, no meeting, no paper, delivery of loans and bank cards than in both quarters before that,” he told Entrepreneur India . “Bank CEOs I’ve spoken to are telling an identical story. Pre-COVID probably 30 % of their business was digital and 70 % was offline, however they think that by the finish of the year this ratio will be the mirror opposite.”
On being asked whether massive layoffs, paycuts and the entire grim job market will impact retail borrowing, Shetty says that loan amount will certainly fall however they expect a rise in digital transaction volume. “Say, if this past year loans worth INR 100 were disbursed, no more than 30 % was happening through digital mediums like Bankbazaar. Whereas this season, as the loan amount might fall, to state INR 70, however the percentage share of it disbursed digitally will be much higher. So, for all of us this shift to digital usage of credit will balance fall in loan demand,” he explains.
The business statement said that prior the countrywide lockdown announced by the federal government to combat spread of coronavirus, it had been treading to accomplish operational month-on-month profitability in March 2020. “The shutdown was a reset button for all of us but we are confident that considering that May was much better than April so basis this fundraise we are certain to get back again to EBIDTA break-even on per month on month basis rapidly,” says Shetty.
“Fintech is a not really a sunset industry and digital credit or digital usage of credit will bounce back considerably faster than offline. This industry will grow this season,” he adds.
Bankbazaar could decrease its cost by 15 % between October 2019 and March 2020, according to its statement, adding that its registered customer base risen to 40 million through the same period.
With the most recent round of funding, the company’s total external funding raised across several rounds stand