Fintech startup Cash Suvidha raises $2.7 million in debt

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Delhi-based fintech startup Cash Suvidha has raised an institutional debt of USD 2.7 million from various financial institutions in order to drive the next level of growth.

The funds raised will be used primarily to increase its portfolio of SME and personal loans, especially in markets such as Delhi-NCR, Bangalore, Pune, Hyderabad, and Mumbai.

"This working capital infusion will provide propulsion for further accelerating the company's exciting growth plans. The funds so raised will be used to replenish our loan book and widen our reach across the country. We are confident that our relationship with these institutions will help us in empowering more SMEs by addressing their working capital requirements,” Cash Suvidha founder Rajesh Gupta said.

The startup also partnered with HomeCapital recently to extend unsecured credit at zero percent interest to first-time homebuyers.

Cash Suvidha filters borrowers through metrics, allowing people to borrow without the traditional creditworthiness score.

The startup has developed its own ‘Suvidha Social Score’ metric to assess creditworthiness using social media portals, educational & professional background, lifestyle spends, payments behavior, and spending patterns.

The company claims to receive around 15,000 loan applications per month and has disbursed a total amount of Rs 102 crore since its ineption in 2016.