With this new round of funding, the company has raised a total of Rs 320 crore till date and plans to raise Rs 250 crore more from debt investors.

SME financing platform Ziploan raises Rs 90 cr in Series B round led by SAIF Partners
Atom Fund Raising Tuesday, February 19, 2019 - 19:55

SME financing platform Ziploan has raised Rs 90 crore from a clutch of investors led by SAIF partners. Others to participate in this Series B funding are Matrix Partners India, Waterbridge Ventures and Whiteboard Capital. The total funds raised by Ziploan so far adds up to Rs 320 crore and the startup plans to attract another Rs 250 crore through debt financing.  

The emergence of fintech startups in the Indian context has been a boon to the highly under-banked MSME sector. One estimate puts the number of such units at 50 million and a majority of them cannot obtain funding from the normal banking channels. Borrowing from other sources could be prohibitively expensive for these companies and they suffer due to working capital constraints.

Ziploan lends small ticket loans of the size Rs 5 lakh. They employ technology to make the objective assessment of the borrowers’ loan eligibility with a proprietary tool called ZipScore. And they are quite swift with the appraisal taking just 4 days to process a loan and disburse.

Shalabh Singhal, Co-Founder and COO, Ziploan said, â€śWe at Ziploan believe that small business owners are the real change makers in India and by solving their biggest pain point i.e. access to organised finance, Ziploan can create a very big impact in the society. Ziploan has developed proprietary technology and machine learning powered applications to serve this segment at scale. We feel inspired partnering with SAIF, Matrix and Waterbridge who have helped build many successful Institutions in the past.” 

The startup has clocked a growth of 10 times in terms of monthly disbursals. The company has tied up with banks and NBFCs for co-lending. These include IDFC First Bank, IndusInd Bank, Northern Arc, MAS Finance and Caspian Finance, to name just a few.  ZipLoan operates in limited geography for the present covering NCR, Mumbai, Indore, Lucknow, Dehradun and Jaipur. They hold a loan portfolio of Rs 150 crore and a borrower count of 3500.

"We are excited to partner with the Ziploan in their mission to make small business lending efficient and hassle-free. We were impressed by the team's ability to demonstrate strong growth, capital efficiency and robust book quality driven by their proprietary ZipScore. We're confident the team will continue to scale and execute on their vision of being the preferred lender for micro SMEs,” Mridul Arora, Managing Director, SAIF Partners, said in a statement.

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