Tracxn Alternative Lending India Startup Landscape, July 2016

Alternative Lending India, July 2016

TracxnWorld’s Largest Startup Research Platform

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Contents

Topic Page No.

Scope of Report 05

Entrepreneur Activity 10

Investment Trend 12

Who is Investing 19

Exit Outlook - IPO, Acquisitions 23

Sub Sector Analysis 25

Expert Speaks - Insights from Blume Ventures 36

Interesting Companies 42

Useful Links 44

Company List 46

Team 102

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Illustrative Sectors We Track

OFFLINE

AGRICULTURE

FOOD & BEVERAGE

OUTSOURCING

CONSUMER GOODS

HEALTHCARE

FINANCE

EDUCATION

MEDIA & ENTERTAINMENT

TECH

MOBILE

MARKETPLACES

CONSUMER DIGITAL

ENTERPRISE TECH

FINTECH

ADTECH

HEALTHTECH

EDTECH

SaaS

TECHNOLOGY

CROSS BORDER

Payments

Mobile Payments

Investment Tech

Banking Tech

Alternative Lending

Bitcoin

Forex

Insurance Tech

Consumer Finance

Enterprise Finance

Crowdfunding

Software for Institutional Investors


Sector Overview

Scope of report

This report covers lending companies which operate through an online platform and helps lenders with documentation, loan

servicing/operations. These platforms are not backed, operationally, by traditional brick & mortar financial institutions and use

alternative data points for credit scoring. The report also covers companies that enable lending by offering alternate credit

scores to financial institutions, helping people improve their credit scores and aggregating lending products through which users

can check their eligibility.

The online lending platforms have been categorized into consumer lending platforms, business lending platforms and invoice

financing platforms.

Further each of these sub sectors have been divided into following business models:

The scope of this report includes equity as well as debt funding received by the companies.

Business Model Description

Direct Lenders Platforms that are registered as a NBFCs and give loans on their own books

B2C Marketplaces Platforms that tie up with lenders for loan origination. Lenders include financial institutions and banks

P2P Marketplaces Platforms that allow individual investors to offer loans


Market Overview – SME Lending


Market Overview – Consumer Lending


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Scope of Report

Entrepreneur Activity

Investment Trend

Who is Investing

Exit Outlook - IPO, Acquisitions

Sub Sector Analysis

Expert Speaks - Insights from Blume Ventures

Interesting Companies

Useful Links

Company List

Team


YoY – Number of companies founded

8 9 9 10

28

70

14

0

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2010 2011 2012 2013 2014 2015 2016

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Milaap EarlySalary


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Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis



Useful Links

Company List

Team


YoY – Number of Rounds and Total Funding

$1M $3M $0.1M$6M

$0.1M

$4M

$18M

$103M

$68M

1 1 12

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2008 2009 2010 2011 2012 2013 2014 2015 2016

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(in

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Funding Amount Number of Rounds

Note: The funding includes debt rounds also.


YoY – Number of Rounds by Stage


YoY – Funding by Stage


Average Ticket Size – Early Stage


Recent Investment Activity


Funnel view of Sector


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Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis



Useful Links

Company List

Team


Most Active Investors in Sector

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5

3 3 3

2 2 2 2 2

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Sequoia Capital AspadaInvestments

Accion SAIF Partners WaldenInternational

Aarin Capital Accel Partners DSG ConsumerPartners

Elevar Equity Kalaari

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CreditVidya


Where are Top Investors investing


Top Investor by Stage of Entry


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Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis



Useful Links

Company List

Team


Major Acquisitions

Date Company Acquirer Deal Size OverviewTotal

Funding

Jul-2015 apnapaisa.comAPNAPAISA

(Mumbai, 2007)andromedaloans.com Undisclosed

Online marketplace for loans and investment productsSequoia Capital, Jafco Asia, Intel Capital, ChrysCapital

$20.2M

Andromeda, a Direct Sales Agent acquired apnapaisa.com in stock and cash deal. APNAPAISA has disbursed loans worth more than INR 5000 Crores and has 100K+customers

Apr-2015 rupeepower.comRupeePower

(Gurgaon, 2011)snapdeal.com Undisclosed

Online platform for personalized loan rates and insurance quotes

Undisclosed

RupeePower was acquired by Snapdeal in a cash and equity deal reported to be around $50M. The company has disbursed loans worth INR 1500 Crore in FY15


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Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis



Useful Links

Company List

Team


July 2016Tracxn BlueBox : Alternate Lending - India

Cumulative funding in the sector

150+ companies in the sector, 38 funded since 2011, $171M invested in 2015/16

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YoY Startups Founded

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YoY funding trend (in $M)


Top Business Models by Funding

$104M

$96M

$21M

$5M

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96

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Loan Comparison Platforms Commercial Loans Consumer Loans Credit Scoring andCredit Score Improvement Platforms

Tota

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# Cos. 43 32 68 11

CreditVidya


Loan Comparison Platforms – Entrepreneur Activity and Investment Trend


Loan Comparison Platforms – Most Funded Companies


Credit Scoring and Credit Score Improvement Platforms – Entrepreneur Activity and Investment Trend


Credit Scoring and Credit Score Improvement platforms – Most Funded Companies


Commercial Loans – Business Model Description


Commercial Loans – Entrepreneur Activity and Investment Trend


Commercial Loans – Most Funded Companies


Consumer Loans – Business Model Description


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Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis



Useful Links

Company List

Team


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VIEWS FROM INDUSTRY EXPERTS

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Tracxn Presents Investor Insights on Alternative Lending Sector, In collaboration with

Karthik Reddy Managing Partner, Blume Ventures

DhanasreeAnalyst, Blume Ventures

Rohan ParanjpeyPrincipal, Blume Ventures

Adit ParekhPrincipal, Blume Ventures

https://www.linkedin.com/in/karthikreddyb

https://twitter.com/BKartRed

https://in.linkedin.com/in/dhanasreemolugu

https://twitter.com/DMolugu

https://in.linkedin.com/in/rohan-paranjpey-841a7624

https://twitter.com/rohanparanjpey

https://in.linkedin.com/in/aditparekh


Tracxn Presents Investor Insights on Alternative Lending Sector

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Tracxn Presents Investor Insights on Alternative Lending Sector

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Consumer Loans – Entrepreneur Activity and Investment Trend


Consumer Loans – Most Funded Companies


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Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis



Useful Links

Company List

Team


Deadpooled Companies

Company Overview Business ModelFunding Amount

finrek.comFinrek

(2014, Jaipur)Online marketplace for loan offers

Loan Comparison Platforms $50K

kreditkonnection.comKredit Konnection(2015, Mumbai)

B2C Marketplace for personal loans Consumer Loans > Personal Loans > B2C Marketplace

instaloans.inInstaloans

(2015, Bangalore)Platform for personal loans Consumer Loans > Personal Loans >

B2C Marketplace

finnovo.inFinnovo

(2015, Hyderabad)Advance loans on invoices/receivables Commercial Loans > Working Capital

> Alternate Financing > Discounting

loansetu.comLoansetu

(2015, Delhi)Marketplace Connecting Borrowers and Lenders

Commercial Loans > B2C Marketplace

hedwic.comHedwic

(2015, Hyderabad)Peer to peer lending platform Consumer Loans > Personal Loans >

P2P Marketplace

instakash.inInstaKash

(2014, Bangalore)SMB lending platform for terms loans and automobiles

Commercial Loans > B2C Marketplace

smefinancemart.comSMEFinancemart(2014, Gurgaon)

Finance facilitator for MSMEsCommercial Loans > B2C Marketplace


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Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis



Useful Links

Company List

Team


Useful Links

Title Content Platform Link

List of All Companies in readable format Companies Link

Upcoming Sectors Entrepreneur Activity Link

Recent Transactions Investment Trend Link

Acquisitions till date Exit Outlook - IPO, Acquisitions Link

Deadpooled Companies Companies Link

Fintech India Business Models Link

Fintech India Landscape Link

http://tracxn.com/theme/feedview/5319d03fe4b05372a4bb3cb1#feedName%3DFinTech%20-%20India%7CbusinessModel%3D55f015a9e4b0fda435174a7e%3AAlternative%20Lending

http://tracxn.com/theme/upcoming/5319d03fe4b05372a4bb3cb1#feedName%3DFinTech%20-%20India%7CbusinessModel%3D55f015a9e4b0fda435174a7e%3AAlternative%20Lending

http://tracxn.com/theme/transaction/5319d03fe4b05372a4bb3cb1#feedName%3DFinTech%20-%20India%7CbusinessModel%3D55f015a9e4b0fda435174a7e%3AAlternative%20Lending

Tracxn.com

http://tracxn.com/theme/feedview/5319d03fe4b05372a4bb3cb1#%7Csort%3DtransactionFundingRoundAmount%7Corder%3DDEFAULT%7CfeedName%3DFinTech%20-%20India%7CbusinessModel%3D55f015a9e4b0fda435174a7e%3AAlternative%20Lending%7CcompanyType%3DDEADPOOLED

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Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis



Useful Links

Company List

Team


COVERS THE FOLLOWING SECTORS

Commercial Loans Consumer LoansCredit Scoring and Credit Score

Improvement PlatformsLoan Comparison Platforms

Alternative Lending India – Company List

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Commercial Loans (1/11)

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Improvement platformsLoan Comparison Platforms

Company Details Funding Investors

B2C Marketplace

Indifi [Gurgaon, 2015]: Indifi is a SME lending platform which aims to connectsmall businesses with formal lending institutions and enable disbursementswithin four days from application. It collects a fee for the services provided tolenders – from marketing, to data collection and analysis, and on-grounddocumentation and verification. Claims to have partnered with travel andticketing platform, cab aggregator and ecommerce company. It has raised fundingfrom Accel Partners, Elevar Equity, Pramod Bhasin, Rajan Anandan, GauravDalmia, Abhishek Goyal, Gagan Hasteer and Arun Tadanki.

Accel Partners, Elevar Equity

B2C Marketplace

Biz2Credit [Noida, 2011]: Biz2Credit is an online credit resource for startups andsmall businesses. It is an online marketplace bringing together lenders and fundseekers to get small business loans, lines of credit, equipment loans, workingcapital and other business funding options. Partners include Axis Bank, DeutscheBank, Indiabulls, Bajaj Finserv, Bank of Maharashtra, etc. Indian subsidiary ofBiz2Credit which has raised $250M from Direct Lending Investments.

B2C Marketplace

Loan Frame [Mumbai, 2015]: Loan Frame is a SME lending marketplace. Usesproprietary technologies to originate, underwrite and distribute small businesslending products. The company builds its own credit score, with traditional andnon-traditional credit metrics.

http://www.indifi.com/

http://www.biz2credit.in/

http://www.loanframe.com/



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B2C Marketplace

InstaKash [Bangalore, 2014]: Instakash aims to empower small businesses usingthe lending platform. They are currently offering terms loans and line of credit tosmall businesses and car owners who are partnered with Ola, Uber, Taxiforsure orMeru. Uses proprietary algorithm to arrive at alternate credit scores. Claims thatthe application process can be completed in minutes and loan is processed in 72hours. The company has a NBFC license. Has received undisclosed amount offunding from angel investors.

B2C Marketplace

SMEFinancemart [Gurgaon, 2014]: SMEFinancemart is a web based venture thatenables MSMEs to access funding and government schemes. The company worksas a business advisory platform where it helps facilitation of timely credit flow tomicro & small businesses. It assesses the needs of MSMEs and in consultationwith them chooses the most appropriate product and suitable lenders who havethe matching risk appetite. It further submits a quality application to the lenderfor loan sanction.

B2C Marketplace

Namaste Credit [Bangalore, 2014]: Online maketplace for business loans whichmatches funding needs of businesses with lenders. The platform helps with ratingthe business and submitting the required information and paperwork to multiplelenders in order to get approval for then needed capital. Also offers acustomizable financing program for businesses with less than perfect credit score.Uses its risk scoring algorithm to match borrowers to financial in a secureenvironment.



http://www.instakash.in/

http://www.smefinancemart.com/

http://www.namastecredit.com/



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B2C Marketplace

ZoukLoans [Delhi, 2015]: ZoukLoans is an online lending platform offeringcollateral free working capital loans and secured term loans. The company hastied up with 60 lenders and claims to have screened 1100+ applications. Lendingpartners include BNP Paribas, Bajaj Finserv, Citibank, Karvy Finance amongothers.

B2C Marketplace

CoinTribe [Delhi, 2015]: CoinTribe is a lending marketplace offering business andpersonal loans. Claims that the loan is approved in 10 minutes. The company usesa proprietary algorithm to link multiple data sources ranging from the creditbureau to social media to determine the credit worthiness of an SME. As of April2016, the company was getting upto 30 applications on a daily basis. Backed byPuneet Dalmia, MD of Dalmia Cements.

B2C Marketplace

SMELending [Bangalore, 2015]: SMElending.com is a lending marketplace thatconnects buyers, business sellers, and lenders. The company uses non-traditionaldata points to reduce the operational risk & costs of lending. Smelending.com is abusiness initiative of Innoviti Payment Solutions. It also claims to be present in30+ cities and distribute 400 loans daily with Rs. 400 crores distributed annuallyand claims to have 20,000 registered buyers.



http://www.zoukloans.com/

http://www.cointribe.com/

http://www.smelending.com/



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Consumer Loans (1/24)

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Credit Scoring and Credit Score Improvement platforms (1/4)

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Loan Comparison Platforms (1/15)

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Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis



Useful Links

Company List

Team


Team

Prasanna Munot,

Analyst – Fintech India

Zerish Nazir,

Lead Analyst – Fintech India

https://in.linkedin.com/in/prasanna-munot-24219b5a

https://twitter.com/prasannamunot

https://in.linkedin.com/in/zerish-nazir-7758328

https://twitter.com/zerishnazir

Data & Analytics

Tracxn Alternative Lending India Startup Landscape, July 2016