Tuesday, November 29, 2022
Outlook.com
Outlook India
Outlook Business
+

SME Lending Start-Up ftcash Gets NBFC License From RBI

The fintech has raised $10.2 million in funding, after closing a Series A funding round of $1.5 million in May 2022

SME Lending Start-Up ftcash Gets NBFC License From RBI
POSTED ON November 11, 2022 3:05 PM

Small and Medium Enterprises (SME) lending start-up ftcash has received the license from the Reserve Bank of India’s (RBI) to set up a non-banking-financial company (NBFC). With this latest development, the fintech plans to disburse loans worth Rs 100 crore in FY23, it said in a statement. 

Founded in 2025 by Sanjeev Chandak, Deepak Kothari and Vaibhav Lodha, the Mumbai-based start-up aims to empower over 60 million micro-merchants and small businesses by bridging the lending gap with easily accessible loans. 

The company utilities its proprietary algorithm to analyse creditworthiness and offer institutional finance to underserved MSMEs including retailers, pharmaceuticals, garments, and mom-and-pop stores. 

ftcash has joined hands with Northern Arc, Ugro, and Ambit to provide credit offerings to customers. 

Till now, ftcash has raised $10.2 million in funding. The company closed a Series A funding round of $1.5 million on May 04, 2022. It has bagged investments from Accion, FMO, and IvyCap Ventures. 

The company is currently having 60,000 merchants and have disbursed loans of Rs 600 crore till now, co-founder and CEO Sanjeev Chandak said. 

“Despite the government announcing several measures to enhance credit availability for the stressed MSMEs segment, nearly 80% of the total MSMEs in India lack access to lending. The NBFC license will allow us to bridge this credit gap while offering loans with minimal documentation along with daily repayment options via PoS with equated daily installments,” he added. 

  • Related Articles

    IFSCA Chief Technology Officer Joseph Joshy said Indian Fintechs have started applying for the IFSCA Fintech Incentive Scheme, 2022, which has six types of grants

    Funding Winter: IFSCA Aims To Hand Out Fintech Grants To Indian Innovators From Early Next Year

    The payment-focused start-up is backed by Bessemer Venture Partners, USA, FMO, Netherlands, Catamaran Ventures, Panthera Growth Partners, Singapore and Alumni Ventures

    Fintech Innoviti rebrands into an accelerator of commerce

    The company also launchd a new digital media collective called Humanise

    Fintech Plum Revamps Its Brand Identity