Matrix Partners on Wednesday said it has invested in the Delhi-based fin-tech startup ZipLoan.
ZipLoan provides small ticket business loans of up to Rs 5 lakhs to micro-enterprises and SMEs.
The funds will be used to expand the team, enter new geographies and enhance its technology.
Existing investors Whiteboard Capital and WaterBridge Ventures among others also participated in this round."With 40 million SMEs, SME-lending is a large opportunity, but with tough execution challenges. We are impressed by ZipLoan’s approach to solving this problem and are privileged to partner with them. We believe it’s still early days of the India fin-tech story and will continue to invest in the space," said
Vikram Vaidyanathan, Managing Director of Matrix India.
ZipLoan uses its proprietary risk assessment engine with digital data points, called ZipScore, to automate credit decisions.
Shalabh Singhal, Co-founder, and COO, ZipLoan said, “The investment from Matrix would help us further invest in automation and in improving our credit scoring algorithms. We envision ZipScore establishing itself as the industry standard SME credit risk assessment tool in the years to come.”The company is operational in Delhi and Indore. It has partnered with IDFC Bank to provide loans to first-time borrowers and also has debt partnerships with NBFCs such as IFMR Capital and Essel Finance.