Cash Suvidha raises $2.5 million via debt funding

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Delhi-based microlending startup Cash Suvidha has raised a debt of USD 2.5 million (approx Rs 16 crore).

The fintech firm plans to use this debt investment to increase the loan books of the company.

Of the total funds raised, USD 1.5 million has been raised through private placement of non-convertible debentures (NCDs)and USD 1 million has been raised from 2 financial institutions, the company said.

Founded in 2016, the company provides a variety of loans and funds primarily used to facilitate further lending to SMEs and to cater to the loan needs of individuals, particularly in Delhi NCR, Bangalore, Pune, Hyderabad, Mumbai and Rajasthan, it added.

"This capital infusion will provide the impetus for further accelerating the company's exciting growth plans. The influx of funds will enable us to replenish our loan books and will allow us to cater to a wider range of SMEs across the country," Cash Suvidha Founder Rajesh Gupta said.

The firm said it receives around 15,000 loan applications per month and has disbursed a total amount of Rs 122 crore since its inception.

In December 2017, the company had raised a debt of USD 2.7 million from six financial institutions.