FinBox comes out with flying colors and plans to expand.
Finbox, a B2B Fintech startup, on 20th June 2022, announced a fundraise of $15M, which translates to a whopping 115 crore in Indian Rupee. They have a planned motive going forward, to expand both in quantity and quality. The funding will help them disburse around Rs 20,000 crore worth of credit by 2023 and expand to several parts of South East Asia. FinBox is a credit risk management platform with exclusive data connectors that help in lending to self-employed merchants, non-banking financial companies(NBFCs), and new-to-credit customers.
CEO’s comments on FinBox cracking a $15M
Led by A91 Partners, along with Aditya Birla Ventures, Flipkart Ventures, Arali Ventures, etc., participating in a startup initiative by Rajat Deshpande, Anant Deshpande, Nikhil Bhawsinka, and Srijan Nagar bloomed into FinBox, trying to reach new heights. "The future of financial services lies in every company and brand providing a curated set of offerings to their own users in their own platforms and ecosystems. This improves trust and the velocity of transactions and helps users get the financial products they want, wherever they want them. We enable that by allowing any company, including fintech, banks, and conglomerates, to offer 100% digital products within a matter of days," says Rajat Deshpande, CEO and co-founder of FinBox. Adding on to this, Deshpande emphasized making financial services simple, convenient, and concise for everyone and also building and launching newer, effective products without hard work. They say that work smart, not hard, and Deshpande is leading FinBox to new heights by adhering to it."We have two lines of underwritings - device-based and bank statement-based… We are planning to expand both these products further in Southeast Asia," Deshpande told Economic Times.
FinBox's Embedded Finance Stack and data intelligence suite have kept it on track to facilitate the disbursement of more than Rs 20,000 crore in credit by March 2023 through its ecosystem of more than 50 partners, including NBFCs, Banks, and FinTechs.
Currently, FinBox counts the likes of Khatabook, ZestMoney, TrueBalance, Home Credit India, IIFL, telcos, banks, NBFCs, and other Fortune India 500 companies among its clients. Founded in 2017, FinBox is launching new products such as consumer optimization and equal daily installment (EDI) stacks with QR codes in India.
The company's line of argument states that credit architecture hasn't evolved much in the last five decades and has become obsolete for the digital age. Hence, it needs to be recreated and revamped by emphasizing more seamless digital onboarding, instant underwriting for even new-to-credit borrowers, empathetic collections, and distribution through large non-financial platforms such as super apps or B2B ecosystems such as accounting apps, agricultural platforms, retail tech companies, etc.
Having more than 25 anchor platforms using FinBox Embedded Finance Stack to launch and scale credit products, FinBox is now planning to go after large enterprise clients across lenders and conglomerates. Embedded Finance, for the ones who do not yet know about it, is the strategy of non-financial companies to get into financial services by launching products such as BNPL, loans, or credit cards. The wave of digitization and decentralization of finance is prompting even the legacy companies to recraft their offerings, and FinBox is already working with many Nifty50 companies to launch new-age financial services.
Rajat Deshpande added that the company's vision of powering credit for India's 10 million small and medium enterprises would be satisfied via an ecosystem play - where the user is at the centre of the value chain, and products and delivery are innovated around them. Embedded Finance infrastructure makes formal credit accessible, digital, and financially viable for all stakeholders.
What the Investors have to Say
"We invested in FinBox early, seeing their potential to build world-class credit infrastructure. The team has executed it to perfection as they have now become the infrastructure + credit intelligence partner of choice for large lenders and enterprises. There's an opportunity to extend this play to other banking services, and FinBox is on the right track. We're very excited to be a part of this journey," Arun Raghavan, Founding partner, Arali Ventures.
Kaushik Anand, the Partner, A91 Partners, made remarks about FinBox saying, "Financial services are moving out of the physical premises into the palms of the users. This requires credit and underlying value chains to be reimagined and built from the ground up for a digital-first era. FinBox is the region's most prominent credit infrastructure player, and we back the team to lead this transformation. FinBox is well placed to become the leading infrastructure player for banking-as-a-service internationally too."
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