Matrix Partners India invests in Finomena
Bangalore, India - March 8, 2016: Matrix Partners India announced today that it has invested in the fin-tech startup Finomena. Founded by a team of IIT and Stanford graduates who have previously worked with Facebook, Microsoft, Boston Consulting Group and Bain Capital, Finomena uses alternate data sources and proprietary algorithms to evaluate credit-worthiness of borrowers such as college students or young working professionals. This enables borrowers to purchase aspirational phones, laptops and other consumer electronics online by opting for easy installment or financing options.
Most banks and NBFCs do not cater to this segment due to lack of appropriate credit history and high operational costs. Finomena has re-thought the entire process end-to-end so that disbursing such loans at scale is viable. An individual can use Finomena''s intuitive app or website and apply for a loan to purchase a product online. It only takes three minutes to fill a fun loan application online and just 24 hours for the applicant to know if his or her loan has been approved. Applicants also have flexibility to choose the number and amount of monthly installments that meets their monthly budget.
"India is a credit starved country. True financial inclusion will only come by use of mobile technology at mass scale. We believe we can use the power of machine learning algorithms and the digital footprint being created by each person today to evaluate their credit risk more holistically, thereby creating a win-win situation for the entire ecosystem," said Abhishek Garg, Co-Founder of Finomena.
Commenting on the fund raise, Riddhi Mittal, Co-Founder of Finomena said, "Finomena is disrupting how capital should be disbursed and collected. Consumer first product and design led thinking is at the core of everything we do. The products that we launch will speak for themselves. We decided to partner with Matrix Partners India as we believe they share our vision and will give us the necessary edge to win in this market."
"We are excited to partner with Riddhi and Abhishek in their mission to create a tech led conusmer lending company in India. We especially believe in their fresh approach to solving a tough problem and outstanding product-tech capability. Fin-tech is a focus area for Matrix and we will make multiple investments in the space," said Vikram Vaidyanathan, Managing Director, Matrix India
Select entrepreneurs and angels also invested in this round of funding. They include Kaushal Aggarwal, MD and Co-Founder of Avendus and Harshvardhan Chamria from Magma Fincorp Limited along with other leading entrepreneurs and angels. Both Finomena and Matrix India are privileged to have this association.
About Finomena (8Finatics Mobile Pvt. Ltd.):
Finomena is a big-data-driven financial platform that enables individuals to buy aspirational goods online through easy installments or financing options. Starting with students and young professionals, Finomena is aiming to radically change the end-to-end experience of a borrower, and make young Indians more financially independent, thus revolutionizing the way banking is done for today''s smartphone-wielding Indian. Further information is available at www.finomena.com and their app can be downloaded here.
About Matrix Partners India:
Matrix Partners India is an investment firm with INR 4,000 crore under management. The firm invests in mobile internet companies at the seed, early and early growth stages. The firm has invested in several market leading companies including Dailyhunt (mobile local language platform), Five Star (small business finance), Housejoy (local services marketplace), LimeRoad (mobile social commerce marketplace), Mswipe (mobile POS), Ola (local transportation marketplace), Practo (healthcare app), Quikr (online classifieds) and Stayzilla (short term accommodation marketplace) among others. Matrix Partners has a global network of funds investing in the US, China and India with US $4.5 billion under management. Further information is available at www.matrixpartners.in
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