Loan offering fintech firm NIRA has raised $2.1 million in its Pre-Series A funding round.
Financial Technology (fintech) firm NIRA recently racked in a whopping $2.1 million (app. Rs 15.88 crore) in its Series A funding round. The Shuhari Tech Venture runs a loan offering scheme directed at blue and grey collar workers.
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The funding round was led by both existing and new Angel firms in the United Kingdom, India, and Europe. NIRA has, however, decided to keep its investors anonymous.
The fund raised will assist NIRA to expand its team with expert, talented and experienced professionals. It will also facilitate the development and refining of its products, helping NIRA upscale its lending volumes.
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Founded in 2017, by Nupur Gupta and Rohit Sen, NIRA alleges that it is majorly concerned with reaching out to blue and grey workers. Providing them access to small-ticket loans that could amount to one lakh for a period of one year.
The loans are made available to interested workers via NIRA’s credit line application. Though it was formed in 2017, NIRA didn’t begin operating until the middle of 2018. Its services have grown exponentially, with thousands of customers across over 100 cities enjoying its loan services.
NIRA’s co-founder Sen is an alumnus of Oxford University and the London School of Economics. Prior to launching NIRA, he worked with several top financial companies like Citigroup, Goldman Sachs and the Bank of America. Gupta has also worked with Citigroup and Goldman.
Speaking on the funding round, Sen pointed out that though there were other funding offers from several other Venture Capitalists (VCs), we, however, “decided to stick to our existing investors and take more time to find the right long-term partners”.
Adding that, “In the last 12 months, we have found a good product-market fit, so now we want to build on this strong foundation to scale our business”.
Both Sen and Gupta disclosed that the firm using data and technology will enhance interested customer’s access to loans.
According to Rohit, credit has to be paid systemically. With NIRA, they have been able to design a prototype that can determine quite accurately how credit-worthy a person is.
This, in essence, will make sure funds only go to people who are really in need of it and also have a means of paying back. Customers with good credit scores enjoy loans at lower interest rates. First-time borrowers can, however, also enjoy loans with ease.
NIRA has also teamed up with the Federal Bank for effective loan disbursal.