Fintech Startup HappyCredit Raises INR 5 Cr Pre-Seed Funding
The app saw a response with 500 per cent growth in transactions and GMV on the platform in the last five months
Bengaluru-based startup HappyCredit, an instant cashback rewards application, on Tuesday announced to have raised INR 5 crore in a pre-seed round to accelerate its growth. The funding round saw participation from Kunal Shah (CRED), Krishna Kumar (Simplilearn) as well as the US and Canada-based investors like Goodwater Capital, Magic Fund, MyAsiaVC, Alex Lin (Outlier), Jeremy Cai (Italic), Chris Ye (Uken Games), Saad Siddiqui (Bonsai), Andrew Ladouceur (Bonsai), Charlie Feng (Clearco) amongst others.
The fresh funds will be used to launch new products, build talent and enhance the company’s growth.
"The e-commerce market is dynamic and has been increasingly becoming the preferred mode of shopping amongst consumers across urban and rural India. We wanted to provide consumers with a one-stop shopping destination wherein they are rewarded for making a purchase. The new funding will help scale up our business and reach a bigger Bharat audience," said Jitendra Kumar, co-founder, HappyCredit.
Founded by Jitendra Kumar and Ashish Virmani, HappyCredit is a one-stop online shopping app that offers shoppers rewards, credit, and shopping inspiration. With deep past experience in the e-com category, the duo noticed a clear shift in the space post-pandemic. New Bharat shoppers buoyed by the UPI boom are looking for nudges to adapt quicker to online shopping in the form of savings, rewards, credit and more. Out of these insights, HappyCredit was born in October 2020. For making rewards on shopping delightful, HappyCredit has launched its rewards product 'Aishback' in the market earlier this year. Aishback is a superior form of usual cashback rewards because it's instant and can be transferred to the bank directly.
"Cashback and rewards are a significant part of the e-commerce ecosystem, and with HappyCredit, we want to make the process a seamless affair. In the coming months, we are looking at launching a checkout finance product as well," shared Ashish Virmani, co-founder, HappyCredit.
Currently, the HappyCredit app has over 50 e-commerce merchant brands on its platform, such as Flipkart, Myntra, Ajio, Mama Earth, to name a few. The app has also received over 50,000 downloads on the Google Play store.
“The Indian e-commerce industry is poised for growth with strong young demography, increasing internet and smartphone penetration. We are excited about HappyCredit’s potential at the intersection of e-commerce, rewards and credit, and the strength of the founding team,” added Vivek Subramanian, partner, Goodwater capital.
The company is planning to launch new credit products, scale the user base to 1.5 million in the next 12 months and also expand its platform to offline retailers.