Fintech startup DPDzero on Wednesday said that it has raised Rs 3.9 crore in a funding round led by Better capital. Kunal Shah (founder of Cred), Ramanathan RV (cofounder of Hyperface), Nishchay AG (cofounder and CEO of Jar), Vijay Rajagopalan (head of sales and business development, Amazon Pay (Offline), Abhishek Kothari (cofounder of FlexiLoans.com), and Untitled Ventures also participated in the round.

In a statement, the fintech startup said it will use the new funds to make technology accessible to all cohorts of lenders, allowing them to focus on acquiring new borrowers and not spend expensive engineering bandwidth building non-scalable internal tools to keep operations running.

"We're excited to announce our first round of financing to help financial institutions all over India streamline their lending operations. To meet the shortfall in credit demand in India, lenders need to scale up their capital base and improve their operational processes," Ananth Shroff, cofounder and CEO, DPDzero.

Shroff and Ranjith B R, who were part of the founding team of fintech API infrastructure platform - Setu, founded the company in March this year to address the fact that only 100 million people in India have access to formal credit, leaving the remainder to rely on money lenders.

The company intends to address this problem by boosting formal credit penetration and collaborating with lenders to reduce operating costs. "DPDZero combines our long term conviction in two big areas - fintech and automation. We were impressed with the clarity of thought displayed by Ananth and Ranjith in imagining what automation for lending should be like," said Vaibhav Domkundwar, founder and CEO of Better Capital.