tracxn alternativelendinglandscape india june2015 150708103024 lva1 app6892

8/20/2019 Tracxn Alternativelendinglandscape India June2015 150708103024 Lva1 App6892

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ALTERNATIVE LENDING – India

Startup Landscape

July 2015

Deal Discovery Made Easy


2/22


Tracn!

"uildin# t$e lar#est tea% &' Analysts trac(in# startups

#l&)ally '&r Venture *apital +unds


3/22


Scope of this report

INTERNET

MOBILE

SAAS

MARKETPLACES

ADTECH

EDTECH

FINTECH

HEALTHTECH

ENTERPRISE TECH

TECHNOLOGY

CROSS BORDER

PAYMENTS

MOBILE PAYMENTS

PERSONAL LOANS

BUSINESS LOANS

PERSONAL FINANCE

BANKING

INSURANCE

CRODFUNDING

PUBLIC MARKETSIN!ESTING

B"C # MAR

P"P LE

SME L

SME LEMARKE

CREDIT ALT

T E C H

Sectors we track (in India)

O F F

L I N E AGRICULTURE

MEDIA $ ENTERTAINMENTFINANCE

Sectors covered in this report


4/22


5/22Deal Discovery Made Easy

FACTORINGDe=tor nance in +#ic# ="siness sells its acco"nts recei.invoices0 to a t#ird arty .,actor0 at a disco"nt

FundBox ($57.5M), ApexPeak ($1.8M)

A%ter&'ti(e Le&)i&* 0 US F-&)i&*L'&)sc'pe

BUSINESS TO CUSTOMER LOANSLoans ,or ersonal "roses ,rom a lending ="siness =ased on

vario"s credit ratings Avant Credit ($338M), ZetCa! ($11"M), #redite!($%8M)

PEER TO PEER LOANS(2( marGetlace ,or ersonal loans&endin' Cu ($3*"M), Proper ($315M), Zopa ($58.3M)

MICAOFIN9NCE

LendUp ($64M),Kiva ($9M)

@ITCOIN

BTCJam ($7.3M)

PAYMENT CREDIT LOANS9llo+s credit?+ort#y Internet s#oers to sGi lengt#yc#ecGo"ts1 ays online retailers on t#eir =e#al, and t#en sendsa =ill

A+r ($3"-M)

9**ET @9CED LO9N* Borro ($15M)

ED;C9TION !o"i ($361.M)

ED;C9TION

#eopeCapi%a($.5M)

1234B

(EA*ON9L LO9N* @;*INE** LO9N*

1235B

F"nding in sector

CRODSOURCED LOANS Lending ,rom cro+d to="sinesses +#ic# are credit assessed and aroved ,or l

Fundin' Cire ($"73."M)

BUSINESS TO BUSINESS LOANS

Fundin' Cire ($"73."M), oMo&end ($5.%M),/eatruk ($*.5M)MEACH9NT C9*H

9D>9NCE LO9N*

C&' Capi%a($63M)

C9*H FLOB LO9N*

ne*+ ($179M),Kaa-e ($14M)

TEAM LO9N*

Bond!%ree%($1./M)

1287M



A%ter&'ti(e Le&)i&* 0 I&)i' M'r9et M'!ertic'%s i:p%e:e&te) i& I&)i'

@ITCOINBTCJam ($1.M)

ED;C9TION *oFi .$/M0

ED;C9TION

(eole2Caital.$245M0

F"nding in sector

@;*INE** TO C;*TOMEA LO9N* M9AET(L9CE

Loans ,or ersonal "roses ,rom a lending ="siness=ased on vario"s credit ratings

0ndia &end, #ountone

(EEA TO (EEA LO9N*

(2( marGetlace ,or ersonal loans

Fairent, &endenCu, &oanMeet

(EA*ON9L LO9N* @;*INE** LO9N*

@;*INE** TO @;*INE** LO9N*

Loans ,or ="sinesses ,rom N@FCs

Capita Foat, 2eoro4t!, &endin'#art

@;*INE** TO @;*INE** LO9N* M9AET(L9CE

MarGetlace connecting instit"tional lenders +it="sinesses needing nance

2aateCredit, Mer'er

CAEDIT C9AD 9LTEAN9TI>E*

Cons"mer lending lat,orm ,or eCommerce "rc#ases

Ca!Care, ip, 2Ca!

123;;M



2008 2009 2010 2011 2012 2013 2014 2015

2

1

2

1

2

5

9

4

Alternative lending copanies !o"nded #$ $ear (2008 % 15)

No. of companies

A%ter&'ti(e Le&)i&*+ A ste'). i&cre'si& &-:



Lot of 'cti(it. i& A%ter&'ti(e Le&)i&*se*:e&t i& USo-%) ' si:i%'r tre&) fo%%o, i& I&)i'=• /' ,"nded comanies in (ersonal Loans vertical +it# a ,"nding o, $24%@J 9ver

age o, comanies =eing 2'

• SoFi marGetlace lending lat,orm ,or st"dent loan #as given loans +ort# $&@ years

• @egin o, 2'5 #as seen vent"re caital commitments o, $&''M ,or Lending Tecstart"s in ;*

• Le&)i&*C%-



ersonaloans % 2/

ersonaloans % 2

ersonal oans *-icro!inance

/redit /ardAlternatives

S-oans

S- -arket

ALTERNATI!E LENDING COMPALISTDET9IL* 23 COM(9NIE* .7 F;NDED 9ND 22 ;NF;NDED0

CO>EA* THE FOLLOBIN6 *ECTOA*

ersonal


10/22


/opan$ etails "nding Inv

2/ -arketplace

o"ntone$ 6angalore7 2015 KountMoney is a platform which matches investors with credible salariedborrowers in India. Borrowers are certified by the company through tie-ups with credit rating agencies and loan

recovery agencies. laims to get investors higher returns and borrowers lesser rates than credit cards. !et tobe launched.

2/ -arketplace

Indiaends 6elhi7 2014 "nline platform connecting borrowers and institutional lenders for low rate loans. Ituses a proprietary algorithm that aggregates information from a large number of data sources li#e the creditbureau$ the application form$ social networ#s. %lso provides value-add services such as big-data analytics$credit ris# assessment and verification and automated wor#-flows for loan origination and management.&ounding team comprises of II' and (ondon Business )chool alumni.

ndisclosed *)+ onsum

2/

Instaash 6angalore7 2014 Building a genetic algorithm to connect lenders and borrowers based on socialprofiles$ professional profiles and debitcredit spending data. 'he company is yet to launch its product.

ersonaloans % 2/

'lo#al /

Avan

:est

Perso&'% Lo'&s 0 B"C >2?2@

ersonal


11/22


Perso&'% Lo'&s # P"P >2?8@

/opan$ etails "nding Inve

2

aircent 6'"rgaon7 2013 &aircent offers a ,, lending platform that serves as a mar#etplace for borrowersand lenders to interact directly. /sers who register on the platform to become a lenderborrower undergo adetailed verification process post which borrowers can post their re0uirements for loans along with details of

reason for the money$ loan period and target interest rate. (enders can individually ma#e offers to borrowers$which the borrower can accept or refuse. 1aised capital round led by couple of investors from the micro financeindustry in 2an 345. ill be soon launching a mobile app along with an investor education initiative. 1aised ,re-)eries % funding from M ) ,artners in 2une$ 345 which valued the company at 67M.

+0,3- &usion Microfina,artners

2

iend 6;$dera#ad7 2012 i-lend.in is an online mar#etplace launched by *ipam#ara eb entures ,rivate(imited that brings together creditworthy borrowers and individual lenders for a personal loan transaction withoutthe intervention of traditional financial institutions li#e ban#s. Borrowers can apply for small loans between 1s.5#- 1s.4( for : Months or 4 month period. 'he interest rates vary between 4; - s loanre0uirement and involve multiple lenders. 1aised 644?# from )ingapore-based %ngaros apital.

+11


12/22


Perso&'% Lo'&s # P"P >"?8@


2

oan-eet 6angalore7 2015 eb platform for ,, lending for both personal and business loans. Benefits tolenders include loan documentation$ payment schedule with reminders. &ounded by an II' Bombay graduate.

2

ending /ha"pal 6angalore7 2015 ,lans to offer an online mar#etplace for lenders and borrowers. laims toprovide loans at lower interest rate and higher than savings account. !et to be launched. &ounder is II' K+, and*arden Business )chool alum.

2

Sla# 6;$dera#ad7 2014 *eveloping a peer-peer social lending and borrowing platform as an alternative totraditional loans and investing options. %llows for borrowing IN1 5# - 453# for a span of 4- years. (egal

documentation$ amount disbursement$ AMI processing are among the offerings of the company.

2

>ote4/ash 6;$dera#ad7 2014 ,, mar#etplace that enables users to lend and borrow cash loans for a pre-setamount of time and interest on the loan amount. /sers can get short term loans C4-3 day tenureD for debtconsolidation$ travel eEpenses$ medical emergencies$ home improvement etc$ based on their profiles on onlinesocial networ#s. "ffers several types of memberships such as )ilver$ +old and ,latinum with loam amount limitsranging from IN1 3333 - 53333.

Social

?e /are India 6'"l#arga7 2011 ecareIndia is an online platform which allows registered lenders to lendmoney to poor people. Borrowers return the money and the lenders get an interest on their investment based on

the repayment schedule of the borrower.

oans % 2/

ersonal 2/


13/22


Perso&'% Lo'&s # P"P >8?8@


2

'ood-one$ 6angalore7 2015 +oodmoney is an online platform for registered borrowers to connect with0ualified lenders. Borrowers create a profileCemployment details$ salary$ credit ratingD on the platform$ pay aregistration fees and specify their loan re0uirement. (enders get access to the profiles and provide loans.

Borrowers profiles are physically verified by the company. harges a one-time registration fee and 4.5; of theloan amount at the time of disbursement.

-icro!inance

-icrograa 6angalore7 2009 "nline ,, micro-loans lending mar#etplace platform. (enders can browsethrough the profiles of various borrower profiles and lend amount at a set interest rate return. 'he borrowersmainly comprise of rural population such as farmers and local store businesses who are low income borrowers.'he lender will get 0uarterly repayments into the FMy Micro+raam> account. "n the supply side$ the company@smodel includes partnering with individuals$ foundations and financial institutions. laims of 433; repayment ratetill date.

-icro!inance

=ang e6angalore7 2008 1ang *e is a non-profit organisation that allows individuals to lend money to Indians

from low income households that re0uire a small amount of money CmicroloansD to start or grow a business.Money can be lent in the form of a social investment through 1ang *e@s on line portal. 1ang *e disburses loansto its borrowers through its field partners Cusually N+"sD across India. )ocial investments will be repaid withinterest at the end of a loan tenure Ctypically one or two yearsD.

-icro!inance

-ilaap 6angalore7 2010 Milaap is an online fundraising platform that enables people around the world to fundand impact communities in need of basic facilities in India. Milaap is the world@s first online microlending platformthat enables non-Indians$ non-resident Indians CN1IsD to ma#e a loan to India. 'he loans are given out toborrowers at interest rates of 4-47;C53; lower than eEisting interest rates available to microcredit borrowers.D

%fter the loan has been repaid$ it will be returned to lenders as Milaap credits which they can either withdraw orre-lend to other borrowers.

+1,35-&irst (ight entu&und$ 2ungle apital

oans % 2/

% )i )ersonaloans 2/

eo


14/22


Perso&'% Lo'&s 0 Cre)it C'r)A%ter&'ti(es>2?2@


/redit

/ash/are 6-"#ai7 2014 redit lending platform for consumers to enable them ma#e eommerce purchasesand pay for purchases over : month AMIs. /sers can choose ashare interest free AMI as their paymentoption on the eommerce portal$ get approved$ provide verification documents to initiate the AMI based payment.urrently has partnered with &ab&urnish.

/redit

Sipl 6-"#ai7 2014 )impl is a credit based payments startup. ,ayments can be made by consumers with thepartnered merchants using phone number and a pin for a faster chec#out. Amploys fraud detection algorithmsand notifies via )M) every time a purchase is made. "ffers interest free credit for a time frame of 4


15/22


SME Lo'&s >2?2@


/apital loat 6angalore7 2013 apital &loat is a digital finance company providing wor#ing capital loans forsmall businesses and start-ups in India. 'he company has created a proprietary technology platform to evaluatethe financial health of )MAs. ,rovides loans ranging from 1s. -3 lac at interest rates starting from 4:;.

Borrowers need not pledge property but loans are offered on the basis of cash f lows$ customer relationships andeEpected receivables. Borrowers can apply online and the sanctioned funds are received within ? days. )tanford/niversity founding team.

+1.-

%spada Investme

,artners$ )e0uoi

endingkart 6Aheda#ad7 2014 (ending#art is a web platform that enables )MAs to apply for wor#ing capitalto tac#le their business growth. 'he company uses client>s cash-flow$ credit history and customer eEperiences toevaluate the business. ustomers can select the amount they need and for the amount of duration to get theamount of repayment re0uired. 'he company charges 4; one-time fees for setting up their line of credit in thesystem$ which is payable only if the customer avails the credit facility. &unds offered range from IN1 4 la#h - IN153 la#h. 1aised 69.5 M C6? M in e0uity and 6.5 M in debtD since its inception in %pril 34 sales happens on the ,o) machine.

+4,.-"midyar Networ#Investments$ Kho

oans % 2/

/

'lo#a

ersonaloans % 2/


16/22


SME Lo'&s # M'r9etp%'ce >2?"@


-arketplace

hanaB 6angalore7 2008 *hanaE &inancial )ervices ,vt (td is a digital finance services company is buildingan online money lending mar#etplace allowing lenders and borrowers to interact on the platform and ma#etransactions. as started in 33? ad an online foreign eEchange site$ and pivoted to the current model in 34


17/22


SME Lo'&s # M'r9etp%'ce >"?"@


-arketplace

S-ergers 6angalore7 2013 )Mergers is a )MA focused Mergers %c0uisitions CM%D firm. )Mergers providesservices in M%$ enture apital and ,rivate A0uity fund raising to )MAs$ family owned businesses and startups.)Mergers@ proprietary technology platform helps connect companies with strategic partners and financialinvestors. It also provides add-on services such as business valuation$ information memorandum preparation$business plan preparation and legal documentation.

oans 2/


18/22


LiGed o"r coverage o, t#is sector

@"y Tracn s"=scrition today to get dee coverage across 5'sectors4

Brite to "s at -)'.3si&h'tr'c&3co: and learn #o+o, t#e largest >ent"re F"nds are leveraging Tracn everyday4


19/22


Tr'c& is %i9e G'rt&er for St'rt-p I&for:'tio

Fo"nded =y e?>Cs1 +e are ="ilding t#e largest team o, 9nalyststracGing start"s =y MarGets ) *ectors

ho 're ,e=


20/22


Ho, )o i&(estors %e(er'*e Tr'c&=

• C"rated start"s roles

• ey #ig#lig#ts o, eac# comany

• Team =acGgro"nd and contact details

• Comre#ensive landscae across investa=le t#emes

• *ector s"c# as FoodTec#1 Internet o, T#ings1 Enterrise *ec"rity and many

more

•

*ee start"s =y t#emes1 s"=?segments or stage

• On?demand s"ort on deal?diligence ,or comanies "nder active

eval"ation

• "icG t"rn?aro"nd o, ?2 +eeGs

• Detailed local and glo=al cometitor maing

Deal Discoveryand O"treac#

Comre#ensive*ector Landscae

On?demand DealDiligence *"ort


21/22


Prici&*

9t t#e rice o, an analyst get o"t"t o, a team o, ' analysts

Tracn


22/22


Fo-&)ers

Ne#a *ing#

IIT @om=ay1 *tan,ord 6*@1@C61 *e8"oia Caital

9=#is#eG 6oyal

IIT an"r1 a#oo1 9maPon1

9ccel (artners

tracxn alternativelendinglandscape india june2015 150708103024 lva1 app6892

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