Credit Fair, an Indian consumer lending fintech startup, announced raising $15 million as part of its seed round to grow its technology team and expand its reach into Tier 2 and Tier 3 cities in India.
In a statement, the fintech startup said the funding round was led by angel investors Anand Ladsariya and Alok Agrawal, who have previously backed leading startups such as Oyo, Ola, Mantra, Healthkart, WowMomos, Uniphore, and 1mg.
Founded in 2018, Credit Fair offers lending solutions to both businesses and private individuals at no cost or low cost, unsecured loan options at the point of sale. The ticket size ranges from Rs10,000 to 20 lakh and tenure from three months to three years.
“Our venture aims to financially empower Indians from remote areas or those without a credit score who traditionally comprise some of the most unbanked and underserved segments of the country,” said Credit Fair founder Aditya Damani.
The fintech startup said it will leverage the capital infusion to augment its technology team, enhance underwriting models and expand into Tier 2 and Tier 3 cities to scale its assets under management and progress further in its mission of delivering financial inclusion.
Credit Fair targets growing its active merchants by 5X in one year and 15X in two years. It also seeks to grow its disbursement to a $10 million run rate per month in two years.
In October 2020 Credit Fair was selected to be part of the Finance Forward India 2020, a program to support startups working on improving the financial health of Indian households and women. The program is run by Village Capital in partnership with MetLife Foundation and PayPal.
Commenting on the funding round, angel investor Anand Ladsariya noted that India is the fastest-growing fintech markets in the world while boasting the highest fintech adoption rate globally.
“We are confident in Credit Fair’s vision and the dedication of its strong founding team as they work towards making India a more financially inclusive country,” Ladsariya said.