Contactless finance takes center-stage; Funding to boost technology and processes
Online PR News – 02-June-2020 – Chennai, India – BankBazaar.com, India’s leading financial marketplace with 100 Million visits per quarter, has raised Rs 45 crore in financing from new investor WSV – a joint venture fund of Walden International and Korean company SKTA – and its existing investors including Amazon, Sequoia India, Experian, and Eight Roads. SKTA is part of the Korean conglomerate SK Group, the second largest conglomerate in South Korea. The latest capital raise is part of BankBazaar’s Series D1 equity financing round, and the proceeds are earmarked for accelerating the delivery of contactless personal finance products and business expansion in India.
BankBazaar believes that its mission of paperless access to the right credit products is the need of the hour in this COVID-19 crisis, and consumers, banks, government, regulators have recognised this as the?future. Speaking about the investment, Adhil Shetty, CEO, BankBazaar, said: “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. This round of funding reiterates our investors’ trust in our vision of contactless finance as the future of personal finance and in our ability to make it a reality.”
“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,” says Andrew Kau, General Partner with WSV. Commenting on the investment, a senior Amazon US spokesperson said: “As existing investors, we are glad to support BankBazaar in the current fundraise and look forward to the next wave of digitization in this country.”
Led by strong growth in customer base and reduction in costs, BankBazaar was trending to achieve operational month-on-month profitability in March 2020 when the lockdown was announced. 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 company saw a 53% increase in monthly revenue and a 15% reduction in costs during the same period despite tough market conditions. Adds Shetty, “BankBazaar has always been focused on achieving EBITDA profitability, and going forward, profitability continues to be our top priority. We look forward to accelerating contactless credit from leading financiers and with this round have enough capital to get soon to break even and beyond.”
BankBazaar.com is India’s first neutral online marketplace that gives instant customized 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. Including this recent round, BankBazaar has so far raised USD 116M in funding from investors such as WSV, Experian, Eight Roads, Sequoia India, Walden International and Amazon.