OkCredit is up for sale as fresh capital infusion bid fails

Tiger Global-backed Psi Phi Global Solutions Pvt. Ltd, which owns the OkCredit brand, is up for sale after failing to raise fresh capital, Mint reported on August 31 citing people familiar with the development.

OkCredit had reportedly planned to raise $40 million in the new funding round.

Digital ledger and bookkeeping solutions startup has appointed financial services firm InCred to look for a buyer, the report noted.

The Kirana tech provider is currently valued at $40-50 million, sharply lower than the $83 million it had raised in total from investors over three funding rounds, as per the report.

“The sale talks come on the back of a failed fundraising attempt by the company," one of the sources told Mint.

In February this year, OkCredit laid off 35 employees this month across all functions. As per a company spokesperson, the reason behind the move was the change in priorities for OkCredit. The Tiger Global-backed startup was gearing up for its foray into the fintech sector.

Okcredit first raised seed money from Lightspeed in 2018. In 2019, it raised $15.5 million in a Series A round from Tiger Global and other investors. In the same year, OkCredit raised $67 million in a Series B round of funding led by Tiger Global and Lightspeed.