Mumbai-based digital lending fintech startup, Capzest has raised a seed round of $200,000 led by Lion Ventures along with HNI’s. Investors who participated in the round include Anurag Mehrotra, Varun Dua, Co-founder and CEO of Coverfox, Amit Tambe, former senior partner Trilegal India, Vikas Jhunjhunwala, among others.
Capzest, a digital lending platform that has partnered with banks and NBFC’s, provides personal loans and business loans to small and medium enterprises. It was founded by Sayantan Sarkar and Rohan Adlakha, former IIT Kharagpur students, along with three others, set up the company after spending a few years working for financial institutions like Deutsche Bank and the Rothschild Group.
Capzest’s personal loans range from Rs. 50,000 to Rs. 2 lakhs, with an interest rate of 11.49% to 14%. Their business loans range from Rs. 25 lakhs or Rs.50 lakhs up to Rs. 5 crores, with an interest rate of 10-11%.
Launched during the first week of January, Capzest has partnered with six financial institutions including Reliance Capital and Essel Finance. The company claims that it has received over 1500 applications for personal loans and 150 application for SME loans.
With the fund raise, the company plans on launching new products like education loans for students interested in studying in both international and domestic institutions, personal vehicle loans and commercial loans. It will also focus on expanding its tech team and hiring people for marketing and operations.
“Since the top end of the consumer pyramid is taken care of by banks and the bottom level of the pyramid is addressed by micro-finance institutions, it’s the consumers at the mid-level that are our targets,” said Sayantan Sarkar.
The startup launched its app in February and it is expecting to see 60-70% of applications for personal loans via the app.
Faircent, another P2P lending platform, had already raised $4.5 million in three rounds, from investors like TV Mohandas Pai, M & S Partners etc. Other potent competitors include RupaiyaExchange, Lendbox, Cashkumar, i-lend and Easyrupaiya.