LoanKuber Raises $1.25 Mn As Part Of Pre-Series A Round The company aims to onboard 1000 MSME's in the next 12 months as part of its expansion plan
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LoanKuber, a digital mortgage platform for Micro-SMEs, on Friday announced that it has raised S$1.25 million as part of its ongoing Pre-Series A round. The current round saw participation from LetsVenture, AngelList India, and Accolade.
Prior to this round, LoanKuber had raised a Seed round of $1 million in 2018.
"The funding would enable us to accelerate our mission of providing affordable and transparent mortgage finance to MSMEs, we would strive to achieve our social goals while balancing both growth and profitability that are required to build a large impact-focused financial institution," said Saurabh Nagpal, chief executive officer, LoanKuber.
LoanKuber founded in 2016 by Saurabh Nagpal, an alumnus of IIT Delhi and New York University, who had earlier worked with Lehman Brothers, Nomura, and Barclays, provides mortgage loans between 3 to 10 lakhs to Micro-SMEs, semi-skilled professionals, and everyday services for business expansion. The current credit gap for MSMEs in India is estimated to be $400 billion. The mortgage fintech company would use the proceeds towards building and expanding the team, enhancing the existing tech stack, and rapidly growing the Assets under Management to 75 crores in the next 12 months.
LoanKuber provides customized mortgage loans to underserved MSMEs based on its proprietary underwriting algorithms.
"Today, around 40 per cent of total MSME credit demand is still served by informal sources of credit. This under-served market is a huge potential for MSME lenders such as LoanKuber to cater to, with their innovative business models tailored specifically to the needs and behavior of this segment. We at LetsVenture are looking forward to working with Saurabh and the LoanKuber team as they now accelerate their business," added Sunitha Ramaswamy, president, early stage, LetsVenture.
Automated digital operations help LoanKuber significantly reduce the turnaround time, which is critical in serving micro-mortgage customers. The focus on building strong risk models /processes before scaling up has helped LoanKuber navigate the adverse conditions during the pandemic.
The company aims to onboard 1000 MSMEs in the next 12 months as part of its expansion plan.