[Funding alert] WeRize raises $15.5 mn in Pre-Series B round

Full-stack financial services provider, WeRize has raised around $15.5 million in its Pre-Series B funding round from its existing investor 3one4 Capital,  with participation from Kalaari Capital, Picus Capital, and Orios Fund.

The round also saw participation from new investors like Sony Innovation Fund and British International Investment.

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According to the company’s regulatory filing with the RoC, the board of WeRize has approved a special resolution to allot 31,670 pre-Series B compulsorily convertible preference shares at an issue price of Rs 38,172.83 per share to raise Rs 121 crore ($15.5 million).

3one4 Capital led this round and invest$5.031 million (Rs 38.74 crore) while Kalaari Capital, Picus Capital, and Orios Fund invested $2.01 million (Rs 15.5 crore), $2.01 million (Rs 15.5 crore) and Rs 12.4 crore ($1.61 million), respectively.

New angel investors Sony Innovation Fund and British International Investment infused $2.01 million(Rs 15.5 crore) and $3.01 million(Rs 23.25 crore) respectively.

The Bengaluru-based WeRize was founded in 2019 by former LendingKart executives Vishal Chopra and Himanshu Gupta, It offers customized credit, group insurance and savings products to users living in small towns in India.

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The fintech platform has created a network of local freelance financial advisors/agents who deliver products developed by startups to their social circle both in-house and in partnership.

The company claims that it currently has around 500,000 customers, and aims to add two million customers to its platform in the next three years.

It has also grow its presence to over 4,000 small cities across the country.

According to the company, it’s currently at a gross-revenue annual run-rate of $6.5 million, with roughly 15 percent month-over-month growth.

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In September 2021, WeRize had raised $8 million in a Series A round from led by 3one4 Capital, Kalaari Capital, Picus Capital and Orios Venture Partners.

About WeRize

At WeRize, They are creating a new category in the Indian financial services space. They are building, India’s first socially distributed full-stack fintech platform for middle-class families in tier 2-4 cities. The financial needs of small-city India have been largely underserved since traditional players and even fintechs are unable to properly serve this segment.

WeRize is a full-stack provider, both manufacturing and distributing a wide portfolio of customized credit, insurance, and savings products for 300Mn individuals spread across the 4000+ Tier 2 to Tier 4 towns. This $200 Billion market expects a very different product set as well as distribution model which traditional private banks, insurers, and mutual fund companies are unable to provide. The economics of these products as well as operating in small cities for traditional companies is unfeasible due to their high-cost branch-based distribution model.

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Using the “Social Shopify of Finance” platform, WeRize has enabled thousands of financially literate freelancers in 1000+ cities to sell its financial products in their social circle. This solves trust issues as well as provides high-touch sales/after-sales.

WeRize is the only Indian fintech platform/financial services player that has been able to distribute financial services through freelancers without any of its own feet-on-street/local branches. Their freelancers in 1000+ cities are managed only through Werize proprietary tech platform.