OllyCredit, a Delhi-based fintech startup has received funding from a Japanese company, Incubate Fund. The amount invested has, however, not been disclosed. Other investors that participated in this round include Sandesh Kirkire, Former CEO of Kotak Mahindra Asset Management Company and Yogesh Chaudhary, Director, Jaipur Rugs.
OllyCredit specializes in offering credit cards with a dynamic limit of up to Rs 20,000. They operate at the lower end of the credit card spectrum, calling them micro credit cards and cater to working people with a starting salary of Rs 11,000 and more and focus on the hospitality and healthcare sectors to pick their customers from. There is a tie-up with the DCB Bank to handle the transaction end, which is the use of the cards and to collect the repayments.
According to OllyCredit, they are trying to capture the majority of young men and women out there, who are being denied credit card facility under the traditional banking system which appears to be servicing only the creamy layer on top. Out of a population in excess of 1.3 billion, hardly 16.4 million possess credit cards issued by India’s traditional banking channels. This is the gap OllyCredit is trying to tap.
Incubate, on its part, has set forth a $91 million fund to invest in early-stage startups in India, North America and Asia. The investment firm has earmarked a corpus of $5 million for the India and the typical investment ticket sizes, in startups, range from $20,000 to $500,000. So far, seven startups have benefitted from investment from Incubate Fund.