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Bengluru-Based NBFC InPrime Raises $3 Million Led By Matrix Partners

InPrime which facilitates lending in the informal economy plans to use the capital for geographical expansion, team building, and growing loan portfolio

Bengluru-Based NBFC InPrime Raises $3 Million Led By Matrix Partners
L-R - Rajat Singh, Sneh Thakur, Manish Raj

Outlook Start-Up Desk

POSTED ON January 16, 2024 10:44 AM

Tech-led NBFC, InPrime Finserv has raised $3 million in a Series A round led by Matrix Partners India. The round also saw participation from existing investors, InfoEdge Ventures, Titan Capital, and Kettleborough VC.  

The company intends to use the fresh funds to broaden its geographical presence, grow the team across risk, engineering, analytics, and sales, develop digital channels and credit scoring models, and expand its loan portfolio, it said in a statement. 

InPrime specialises in serving the prime segment within the informal economy. The company added that it aims to revolutionise the lending experience for the prime segment of customers within the informal economy by providing tailored and relevant credit products. 

Rajat Singh, co-founder and CEO of InPrime, said, "India's ambitious target of achieving a $5 trillion economy by 2030 necessitates the informal economy to grow in tandem with the formal sector. InPrime is dedicated to addressing the escalating credit demand within the informal economy, facilitating their contribution to India's growth story."   

InPrime was established in December 2021 by Rajat Singh, Manish Raj, and Sneh Thakur, former members of the leadership team at Ujjivan SFB, a prominent Small Finance Bank in India. With over a decade of banking expertise, each co-founder has held leadership positions across microfinance, rural banking, branch banking, strategy, credit underwriting, credit risk, and collections. 

Avnish Bajaj, founder and managing director of Matrix Partners India, said, “A core part of India’s economic growth is driven by small and medium businesses in the informal sectors of ‘Bharat’. InPrime’s objective of serving this sector with tailored products to help them be part of the $5 trillion and then $10 trillion Indian GDP is incredibly inspiring and necessary.  Led by Rajat, the InPrime team with co-founders Sneh and Manish has all the skills necessary to build a large financial services business and it is a privilege to partner with them on this journey. We are excited to support their mission of empowering small businesses and contributing to digital nation-building." 

In November 2022, the company raised $1.45 million from InfoEdge Ventures, Titan Capital, Kettleborough VC, and other investors. In 2023, it achieved a milestone by obtaining a Certificate of Registration (COR) from the Reserve Bank of India to operate as a Non-Banking Financial Company. 

InPrime is co-founded by Rajat Singh, Manish Raj, and Sneh Thakur. They were part of the leadership team of Ujjivan SFB, one of the major Small Finance Banks in the country, and come with a rich banking experience of over a decade each and have worked across various leadership roles in microfinance, rural banking, branch banking, strategy, credit underwriting, credit risk and collections in the bank. 

Approximately 80 per cent of the Indian population is a part of the informal economy, contributing roughly 40 per cent to the country's GDP.  

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