Jaipur-based digital lending startup Fox Capital has raised USD 2.5 million to expand its footprints pan India.
The funds are sourced from institutional investors and will be deployed to scale up operations in a bid to provide easy and affordable credit to last-mile customers using next-generation distribution platforms.
Fox Capital has taken significant strides in the first six months of its operations and established a customer base of 3000 plus satisfied customers. The rapid growth can be attributed to the usage of technology to offer alternate risk profiling techniques, digital distribution, seamless on-boarding and instant loan approvals.
One of the key differentiators for Fox Capital has been the innovative product strategy with an array of products ranging from consumer durable to lifestyle finance. With the funding, Fox Capital is looking to foray into Payday lending space in collaboration with a distribution partner and offer microcredit personal loans for emergency cash needs.
"Only 3 per cent of the population has a credit history in India. Traditional Banks rely on credit score to establish one's credit worthiness before issuing them a loan. Also, moreover, small loans don't generate lucrative returns for banks, giving them less incentive to grant such loans. This is a gap that we sought to address," said Fox Capital Managing Director, Rakesh Sharma.
The modus operandi for Fox Capital has largely been on sharing symbiotic values with its distribution partners by addressing the challenge of credit gap in consumer lending in India.
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Fox capital has recently partnered with RedCarpet with a vision to provide further expand the credit offerings by collaborating on their offerings on credit card and e-commerce loans.
Fox Capital aims to disburse credit of worth USD 50 mn and one million users in the next 18 months. A small pie, considering the fact that digital lending in India is expected to be a USD 1 trillion opportunity in the next five years, according to Boston Consulting Group.
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