Neobanking Startup Avail Finance raises INR 24 Crore led by Alteria Capital
Avail Finance is a mobile-first platform with the aim of bringing India's urban population into the financial mainstream. Customers can get loans quickly and easily with flexible repayment plans.
The startup has raised $21.6 million in equity from Matrix Partners, Falcon Edge, and Ola to date.
According to co-founder and CEO Ankush Aggarwal, the digital lender that provides collateral-free personal loans will concentrate on diversifying its product range this fiscal year.
“We continue to stay focused on delivering a seamless experience for our customers, and this financial year, the priority will be to diversify our product portfolio, service offerings, and offer financial services to the ever-growing young population. The funding from Alteria is a testimony to the trust that the major ecosystem players are placing in us while we progress in our journey of financially including every Indian," says, Ankush Aggarwal, Founder, and CEO, Avail Finance
During the COVID-19 lockdown, Avail provided interest-free loans to over 100,000 gig employees who had lost their source of income, assisting them in getting through the tough times. It has processed loans for over 300,000 customers to date.
“We are very happy to partner with Avail in their journey of taking financial services to the underserved and credit-starved blue-collared workforce in India. Their proprietary model is custom-made to suit the financial needs of consumers in their segment,” said Punit Shah, Partner, Alteria Capital.
Avail Finance, a fintech company founded by Ankush Aggarwal and Tushar Mehndiratta in 2017, is based on the gig economy. This Binny Bansal-backed startup has evolved from a lending site for the blue-collar workers to a neo-bank with savings, insurance, and investment products, among other categories.
It plays a critical role in improving the financial health of a segment that serves the Indian community. It targets a market with a low credit card penetration rate, little credit history, and little cash on hand.
It raised Rs 1,325 crore ($178.7 million) in contributions as part of the first close of its second venture debt fund last month, exceeding the final target corpus.
At least 25 startups, including Dunzo, Lendingkart, and Faasos parent Rebel Foods, have received funding from the venture debt company.