BankBazaar Raises Rs 45 Crore From New And Existing Investors
The raise is a part of the company’s Series D1 equity financing round. The proceeds of which are earmarked for accelerating the delivery of contactless personal finance products and business expansion in India
A&A Dukaan Financial Services, which owns and operates online financial services marketplace BankBazaar, has raised a bridge round of Rs 45 crore in fresh financing from new investor WSV—a joint venture fund of Walden International and Korean company SKTA along with BankBazaar’s existing investors, which include, Amazon, Sequoia India, Experian, and Eight Roads.
The raise is a part of the company’s Series D1 equity financing round. The proceeds of which are earmarked for accelerating the delivery of contactless personal finance products and business expansion in India, the statement said. The company had raised Series D funding of $30 million from Experian in October 2017.
Shetty said that demand for "contactless finance" is expected to grow exponentially, especially as consumers are worried about safety.
“BankBazaar has spent the last decade in building world-class infrastructure to enable Indians access financial products online from leading lenders across the country. In the post-Covid-19 world, the demand for contactless finance is going to grow exponentially, and this round of funding will help us accelerate our plans to implement contactless access to credit,” said Adhil Shetty, CEO, BankBazaar.
The Chennai-headquartered neutral online financial marketplace, BankBazaar was founded in 2008 by Adhil Shetty, Arjun Shetty and Rati Shetty. The startup aggregates financial products such as home, car, personal loans, and credit cards offered by different banks. It gives instant customised offers on loans and credit cards. It also provides customers free consumer credit score on its portal. Over 50 of India’s leading financial institutions have chosen to integrate themselves with the platform. Users can visit the app or the website and compare offers across various banks and non-banking financial companies (NBFCs) and purchase them online.
Considering its strong growth in consumer base and reduction in costs, BankBazaar, in February said it was close to achieving operational month-on-month profitability by end of FY20 but the global pandemic crisis has cut short this improvement. The startup currently has a registered customer base of over 40 million. Between October 2019 and February 2020, BankBazaar saw a 90% increase in monthly organic traffic and its registered customer base rose to over 40 million, the statement said, adding that the company saw a 53% increase in monthly revenue and a 15% reduction in costs during the same period.
He confirmed that the company’s path to profitability will be extended due to covid-19.
“BankBazaar is creating the ‘Credit Karma’ of India with leading-edge technology, a stellar team, and the support of an incredible set of strategic investors. We can’t wait to see how they help revolutionize the Indian financial services sector," added Andrew Kau, General Partner, WSV Capital.
Including this recent round, BankBazaar has so far raised $116 million in funding from investors such as WSV, Experian, Eight Roads, Sequoia India, Walden International, and Amazon. The startup closely competes with other financial aggregators like Capital-backed Rubique and Tencent-backed PolicyBazaar owned PaisaBazaar, which is currently at $1.5 billion.