Bangalore-based fintech startup SmartCoin has raised $2 million in pre-Series A funding from a Chinese VC fund and Accion Venture Lab. Unicorn India Ventures, which is an existing investor in the company, also participated in the round, along with ISME ACE, a leading fintech accelerator.
Smartcoin will use the freshly raised funds to strengthen its domestic and international expansion plans.
SmartCoin was founded in 2016 by IIT/IIM alumnus Rohit Garg, Amit Chandel, Vinay Kumar Singh, and Jayant Upadhyay.
â€śWe have seen a sharp uptick in growth over the past year and have successfully disbursed over 50,000 micro loans. More importantly, we have been able to open credit access for people who were not able to tap the formal channels and were otherwise dependent on personal networks and loan sharks. With this round, we expect to grow the momentum and further scale 10X over the next 6â€“12 months. Having specialists as investors, who are passionate about micro-lending, on board will only help us cover more ground not only in India but globally too,â€ť Rohit Garg, Co-founder and CEO, SmartCoin, says.
SmartCoin lends small-to-mid-sized ticket loans to mobile users after building a SmartCoin credit score, which is backed by data science and machine learning. The company raised seed funding from Unicorn India Ventures last year.
â€śSmartCoin exemplifies what we at Accion Venture Lab look for in a partner, with its strong entrepreneurial team that is driven by the mission of providing increased access to credit through nano lending to the underserved by using an all-digital platform to expand its reach,â€ť Paarul Dudeja, Director of Investments for India, Accion Venture Lab said.
The Company is already working with several partners for disbursing loans and has achieved strong organic growth. SmartCoin plans to further invest in technology and grow its team as it continues with its expansion plans, with an aim to cover a much larger customer base.
â€śWe invested in SmartCoin last year as we saw an immense potential in the business. Over the course of the year, we have realized the ability of the team to scale its operations rapidly given the right ammunition. Thus, being able to raise top dollar from two of the worldâ€™s largest markets is a testament to our belief in the team. We expect the Company to continue its growth trajectory and at Unicorn India, we believe in backing potential winners. Thus, we decided to participate in this round,â€ť says Archana Priyadarshini, Partner, Unicorn India Ventures.