Zerodha and the founders of WazirX invest in the fintech lender
New Delhi: Local digital lending infrastructure firm Kudos has raised an undisclosed amount in pre-Series A funding from several fintech founders and angel investors, including Nithin Kamath of Zerodha, Nitin Gupta of UNI, Nischal Shetty of WazirX , Patanjali Somayaji from Walnut, Sumit Maniyar from Rupeek, Anish Achuthan from Open Banking, Ganesh Rao from NOCP, Amit Choudhary from DawaaDost, Vaibhav Domkundwar from Better Capital and the entire management team of OneCard.
“Kudos is looking at one of the most exciting opportunities in Indian fintech. Their traction and monthly growth without raising institutional capital is a testament to their PMF (Product Market Adjustment) and the huge opportunity to fuel digital lending in India, ”said Vaibhav Domkundwar, Founder and CEO of Better Capital in a press release.
Kudos claims to be profitable and plans to raise its first major round of institutional funding in the coming months.
“We are profitable and growing month by month and adding partners in agriculture, fintech, edtech, revenue-based finance and other segments faster than ever”, Pavitra Walvekar, co-founder and CEO of Kudos said in a statement.
“We are preparing to take a full-scale A-Series and become the biggest company in space over the next 18 months,” he added.
The Pune-based company previously raised an undisclosed amount in pre-Series A funding last year from Rohit Chanana, former chairman of Hero Corporate Services and founder of Sarcha Advisors, according to reports.
They provide a range of loan-related backend services for FinTech companies, making it easier and faster for clients to onboard and loan disbursements. Their platform takes 4.5 seconds to process a loan and has facilitated 2 million loans worth ??2000 crore so far, they claim.
Their technology stack includes more than 40 APIs covering everything from integration to authentication, subscription, collection and disbursement, enabling any fintech company to launch and lend digitally in two days. It also enables its partners to offer personalized loan solutions to meet the specific needs of clients and sectors.
According to Research and Markets, the Indian digital lending market is expected to grow from $ 110 billion in 2019 to $ 350 billion in 2023. Despite the pandemic, according to reports, lending applications such as MoneyTap registered 40-50% of ‘quarter on quarter (QoQ) growth in disbursements.
Digital loans have come under scrutiny in recent months after several loan applications were found to disburse loans unrelated to an NBFC and for threatening users to collect their loans. In January, RBI formed a task force to examine the risk of digital lending by unregulated players.
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