Virtual credit facility provider Stashfin has secured $5 million in pre-series A funding from Kirloskar Group’s venture capital arm Snow Leopard Ventures and Singapore-based Alto Partners.
Other investors in the startup include Vibhav Dhawan and Praveen Malhotra, managing partners at executive search firm Positive Moves, Avendus Capitalfounder Ranu Vora, commodities trading firm Trafigura’s chief executive Raoul Bajaj, and senior executives from KKR.
“Given the proliferation of global digital lending platforms and Stashfin’s understanding of consumer behaviour, product development and creating a technology platform leveraging the power of machine learning augurs well to the monetisation of Big Data that Stashfin is collecting,” Dhawan said.
ushar Aggarwal, founder of Stashfin, previously held investing roles at Goldman Sachs and private equity firm General Atlantic in New York.
According to a NASSCOM report, the financial technology market in India is estimated at $8 billion, and expected to grow exponentially by 2020. Customers remain at the centre of this market and they increasingly value speed, convenience and digital interactions over traditional branch visits and tellers. Given the legacy infrastructure of incumbent financial institutions, financial technology appears poised for disrupting the traditional financial services sector, the report said. Due to the under-penetration of technology and credit in the financial services sector in India, the sector is lucrative for investment fuelled by increasing digital penetration, it said.
The core team of Stashfin has over 60 employees who have worked with firms such as Bank of America, Citi, Deloitte and Kabbage.