The funding saw participation from venture capital fund Capital A, as well as family offices and angel investors, including Sattva Family Office, Nitesh Damani of Khel Group, and Nikhil Chandra Gupta. InCred Finance, Vivriti Capital, and Caspian Impact have provided the debt capital.
The startup will utilise the funds to augment its technology and launch new products in the wealth-tech space. It plans to enable retail investors to gain access to secured fixed income alternatives previously available only to high-net-worth individuals (HNIs), it said in a statement on Wednesday.
Founded in 2018, Credit Fair offers lending solutions and unsecured loan options at the point of sale to businesses and consumers at no or low cost.
“This [funding] will strengthen our mission to extend credit to underserved Indians. We are excited to have investors such as LC Nueva AIF and Capital A who share our vision of deepening access to credit. The capital infusion and guidance from the marquee group of investors will help us accelerate our journey towards creating a financially-inclusive future,” said Aditya Damani, founder and chief executive officer (CEO) of Credit Fair.
According to the company, the average ticket size of loans on the platform ranges between Rs 10,000 and Rs 20 lakh, with tenure from three months to three years.
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“The revival of economic activities after the pandemic-led disruptions has resurrected the consumer sentiment and reinvigorated the credit demand across business and consumer segments. This behavioural shift has also catalysed steady adoption of digital channels and omnichannel platforms for business or consumer finance solutions,” said Sohil Chand, founding partner, and chief investment officer at LC Nueva AIF.
Credit Fair is looking to reach 5,000 active merchant partners and grow its annual disbursements run rate to $360 million.
“At Capital A, we believe in backing startups that have a solid business model, team, and market potential. Credit Fair has the potential to emerge as the platform of choice for consumers and businesses searching for convenient credit solutions. We are excited to play our part in the growth journey, ” said Ankit Kedia, founder, Capital A.