Fintech startup Cash Suvidha on Monday announced that it has raised a debt of USD 2.5 million of which, USD 1.5 million have been raised through private placement on non-convertible debentures and USD 1 million has been raised from two financial institutions.
The debt investment will be used to increase the loan books of the company.
"This capital infusion will provide the impetus for further accelerating the company's exciting growth plans. The influx of funds will enable us to replenish our loan books and will allow us to cater to a wider range of SMEs across the country. With our aim to provide easy access to credit and working capital to SMEs, 80 percent of our loans are targeted towards SME sector in India," said founder, Cash Suvidha, Rajesh Gupta.
As per a report released by the International Financial Corporation (IFC), small businesses in emerging markets, such as India, are facing a funding gap of USD 2 trillion.
Endeavoring to make the entire process hassle-free; Cash Suvidha provides loans within two working days.
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The fintech startup receives around 15,000 loan applications per month and has disbursed a total amount of Rs 122 crore, since its inception.
In December 2017, the company had raised a debt of USD 2.7 million from six financial institutions.
Cash Suvidha has even managed to become profitable and has maintained its break-even since the beginning of its operations.
The startup has been closely monitoring the business environment and helping potential MSMEs to propel by providing effective financial solutions in no time.
It further helps individuals to avail personal loans to pursue their aspirations by avoiding the tedious process of accessing funds from larger financial institutions.
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