Fintech startup PaySense has raised $5.3m in a Series A round, adding to its impressive fundraising efforts. The latest round was led by Jungle Ventures and it also featured Naspers Group and Nexus Venture Partners. The investment round is a clear example of the strength and attractions of the Indian fintech sector.
PaySense’s strong fundraising efforts continue
The Mumbai-based startup has had a history of strong fundraising rounds. The digital credit platform had raised $2.3 million in 2015. That round was led by angel investors and Nexus Venture Partners, which was also involved in the latest round.
According to the fintech startup, the investment will go towards its technology development and expansion efforts. PaySense wants to grow the team to make it more widely available across India and beyond. Its main focus will be to add more members to its data science and technology team. It currently works in nine major cities including Mumbai, Delhi, Bangalore and Chennai, with around 180,000 users. In the long-term, the startup wants to see PaySense go pan-India.
The latest investment will help sustain the company’s operations for the next 18 months. This will provide the needed security for the team to focus on development and growth.
PaySense has been operating since 2015 and it provides customers with a mobile app that the consumer can then use for finding financing and to make offline purchases. The startup will likely start looking to the option of providing personalised loans to users and according to VC Circle, it is currently in preliminary talks with potential lenders.
First consumer-lending investment in India for Jungle Ventures
For the Singaporean firm, the investment is the first in the Indian consumer-lending sector. The company has been eyeing on the markets for a while and finally moved in on it with PaySense.
Amit Anand, founder and managing partner at Jungle Ventures, said, “We have patiently been looking at this space in India and feel very excited to eventually partner with the PaySense team and other investors. There are going to be a few mega companies being formed in this space and the PaySense team has demonstrated great understanding and traction on various aspects required to become a category leader here.”
Indian fintech sector is attracting lots of investment
The latest fundraising efforts by PaySense follow a string of deals in the sector. The country is clearly highlighting its current potential and providing investors with plenty of opportunities to invest.
In April, Lendingkart raised $4.6m from Anicut Capital LLP. The Ahmedabad-based company offers loans online for small and medium enterprises. Lendingkart had previously raised $32m in Series B round, led by Betelsmann India Investment. Last April also saw lending firm Capital Float raise $2.3m. The investment was led by Mahindra & Mahindra Financial Services. Private equity firms have been busy in the country as well. Paragon Partners invested $15m in two companies in March.