Billionloans Financial Services Pvt. Ltd. today announced that it had closed a seed funding round of approx. Rs 7 crore (US$ 1 million) from Reliance Corporate Advisory Services Limited, a wholly-owned subsidiary of Reliance Capital.
V Balakrishnan, the ex-Member of the Board of Infosys, Chairman of Exfinity Venture Fund and one of the early investors in the company, is currently the Chairman of Billionloans. It is a technology-enabled financial services company, focused on providing flexible and affordable financing options to individuals and small businesses that have so far found it difficult to access loans from the traditional banking system to meet their aspirations.
The company was founded by Dr. Rangan Varadan, a serial entrepreneur who has also co-founded MicroGraam, an online micro-lending platform and other professionals with long experience in the finance and IT industry.
Billionloans connects borrowers to lenders directly and efficiently and uses technology, and alternative data-based credit analysis to assess eligibility and process applications. This means that borrowers get access to fair rates, and lenders get access to good quality, credit-assessed borrowers helping them diversify their loan portfolio.
It will initially focus on loans to SMEs, affordable housing loans, education loans and personal loans. To facilitate loans, the company has tie-ups with reputed financial institutions and banks to its technology platform. In the next 3 years, the Company plans to facilitate around Rs. 2,000 crores of loans across multiple products and lenders.
Speaking at the announcement, V. Balakrishnan, Chairman, Billionloans, said, “India has a large pool of the unbanked population that does not have access to the formal banking system. Technology is going to be a big enabler in addressing this core issue. Our goal is to fundamentally disrupt how borrowers are sourced and appraised using technology in the quickest possible manner. This will lead to a dramatic change in access, both for borrowers with thin credit histories and for lenders looking to expand beyond their traditional customer bases. The investment from Reliance Capital is a great validation of our business model.”
Dr. Rangan Varadan, Founder & CEO, Billionloans, said, “We want to make borrowing easier for small businesses and individuals. We are trying to solve the problem of those who are currently finding it hard to access loans to achieve their life goals, be it growing their small businesses, getting a roof over their heads or getting their children educated. We are integrating diverse data analytic techniques like psychometric analysis and big data, along with user experience focused design to make this happen. We will leverage MicroGraam’s model of building a grassroots partner organization to connect borrowers and lenders.”
Anmol Ambani, Executive Director, Reliance Capital Ltd, said, “Technology and innovation in financial services are going to play a big part in bridging the gap between aspirations of a large number of Indians wanting access to credit on one hand and the ability of companies to build efficient and scalable lending models on the other. We look forward to supporting Billionloans in their vision and partner in their growth”.
The deal was led and structured by Reliance Wealth Management (the wealth management arm of Reliance Capital)