Financial service platform WeRize on September 8 said it has raised $8 million in a Series A funding led by 3one4 Capital, Kalaari Capital, Picus Capital, and Orios Venture Partners.
Founded in 2019 by ex-Lendingkart executives Vishal Chopra and Himanshu Gupta, WeRize promises a full-stack financial service for families in small towns in India. The company distributes and develops customized credit, group insurance, and savings products for 100 million families and 300 million individuals who live in 4000 small towns of India.
“The full stack approach of owning both the product and the distribution gives us unique insights about our customer segment that becomes an unbeatable competitive advantage. With the support of our investors, we have the opportunity to reimagine financial services for a large and profitable customer base that the existing ecosystem has inadequately served. And we will do this while generating livelihood for thousands of partners through our pioneering distribution model," said the founders in a joint statement.
The company plans to become Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) positive by 2022 and has registered ten times the revenue growth last year. It currently caters to customers in 1000 cities and towns. However, it plans to reach 4000 cities in the next two years through its social distribution “Social Shopify of Finance” tech platform with over 50,000 freelance financial consultants across India.
Social distribution has allowed the company to collect over 1 billion data points across 500,000 families in 1000 cities.
Rajesh Raju, Managing Partner, Kalaari Capital, said, “Small town India needs a very different set of products than is currently made available by incumbent players and a distribution model that solves the unique challenges that exist in these markets. The full stack play by WeRize hits all the right notes, and we look forward to supporting the team in the exciting next phase of growth.”Fintech startups have raised a record $22.8 billion in the first quarter of 2021
, and WeRize is another addition to the fintech funding frenzy in the country. Amongst the largest fundraiser of the quarter, Robinhood, an investing app, has the highest amount with $3400 million, led by NEA, Sequoia, and Ribbit Capital, followed by Stripe, Klarna, and Paradigm.