Fintech startup Bueno Finance raises $3 million in seed funding from Goat Capital, JAM Fund, others

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Gurugram-based fintech startup Bueno Finance on June 22 announced that they have raised $3 million in its seed round from a slew of investors including Goat Capital, JAM Fund, Olive Tree Capital, Good Water Capital, and others from Silicon Valley.

The Y Combinator-backed firm is mulling to use the funds to expand the product offerings. Apart from this, Bueno Finance will use the funds to strengthen its team across engineering, product, sales, credit and operations, to support its accelerated growth plans.

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Launched by Saurav Gandhi and Sandeep Arora in October 2019, the fintech startup aims to provide financial solutions to the next billion users in India. Bueno Finance claims that it is a credit-focused neobank for country's middle and lower-middle-income segment.

“Only 10% of the formal credit (mostly secured) goes to 45% households of India earning approximately $200-$400 a month. Bueno Finance wants to democratize credit along with other financial services to this massive segment," Live Mint quoted Bueno Finance co-founder and CEO Saurav Gandhi as saying.

"We are growing very rapidly and plan to acquire multiple partners for customer acquisition. Bueno is partnering with quality employers to fulfil its mission, which ensures a win-win arrangement for the customer and the employer," he added.

Bueno also provides UPI handle which is backed by a credit line approved by Bueno Finance and is used to transact at any online merchant. The app helps customers to transact in the offline world via QR codes available at every merchant.