New-Delhi based online lending platform StashFin has partnered with non-banking finanace company DMI Finance to raise Rs.30 crore for lending through their platform. Founded in September 2016, StashFin provides personal loans ranging from Rs 10,000 to Rs 3,00,000 to salaried professionals. The repayment periods starts at three months.
With the recent round of funding, the company aims to augment its portfolio to meet growing needs of customers. Currently it operates in Delhi, Mumbai, Pune, Bangalore, Hyderabad but plans to start operations in Dehradoon and Indore soon, Tushar Aggarwal, the founder of Stashfin told Business Today.
When Aggarwal returned to India, after almost a decade in global majors such as Goldman Sachs, Lehman Brothers and General Atlantic, he realised the need for an online lender in the country. As he did not have credit history in the country, he was refused a credit card by many banks. This made him look further into the personal lending space in the country and he realised that taking personal loans in the country was a cumbersome process. To solve this problem, he founded Stashfin, which instead of traditional long process of underwriting, uses machine learning to decide on a person's credit eligibility.
"We arrive on a decision about the borrowing capacity of a person based on our machine learning model, which takes into account various sets of data -- information given by the person, borrowers with the similar profile who have borrowed from us, app data, phone and bureau data as well," informs Aggarwal.
According to Aggarwal, they give a 'yes' or 'no' decision to borrowers within seconds, and after deciding his borrowing capacity the money is disbursed in four hours. There is no paperwork involved. The company lends only 10 per cent of the actual lending capacity of a person but Aggarwal claims their rates are reasonable and vary based on their algorithm.
Stashfin has partnered with banks to raise funds for lending and claims to have lowest NPAs in the industry. The company had raised $5 million (Rs 32.2 crore) in a pre-Series A round of funding. The investors included Kirloskar Group's venture capital arm, Snow Leopard Ventures, as well as Singapore-based Alto Partners and GrowX Ventures.