Credit Fair, a consumer lending fintech startup, has raised $10 million in a mix of debt and equity funding round from LC Nueva Alternative Investment Fund (AIF).
The round also saw participation from venture capital fund Capital A, as well as family offices and prominent angel investors such as Sattva Family Office, Nitesh Damani of Khel Group, and Nikhil Chandra Gupta.
Vivriti Capital, InCred Finance, and Caspian Impact have also invested in debt round.
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The startup plans to use the funds to scale up its technology and launch new products in the wealth-tech space.
It also plans to enable retail investors to gain access to secure fixed income options that were earlier available only to high-net-worth individuals (HNIs).
The Mumbai-based Credit Fair was founded in 2018 by Aditya Damani, It provides point-of-sale credit solutions and unsecured loan options 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 startup, the average ticket size of loans on the platform is between Rs 10,000 and Rs 20 lakh, with tenures ranging from three months to three years.
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It aims to reach 5,000 active merchant partners and increase its annual disbursement run rate to $360 million.
“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.
“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.
About Credit Fair
They are an Indian consumer-lending fintech start-up. Credit Fair was founded in 2018 by Aditya Damani and is backed by K.M. Global Group, which has over 30 years of experience in financial services.
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The finance industry has ignored or sold unfair products to billions of deserving individuals. They are a mission-driven team of finance, design and technology professionals that has started CreditFair to provide Fair Finance to Everyone.
Their consumer lending platform is currently focused on the home decor industry and partnering with leading consumer brands. Their founding team has processed applications worth Rs 200 cr per month and won a Banking Technology Award for Best Mobile Initiative. They have graduated from London Business School, Northwestern University (USA), SAIC (USA) and attained the CFA charter.
