Bengaluru-based Avail Finance, a micro-lending startup has today raised INR 85.6 crore (around $11.5 million) in a Series B funding round led by Alphawave Incubation Fund and Matrix Partners. Alphawave and Matrix have injected INR 57 crore and INR 30.2 crore respectively.
In June last year, Avail Finance had raised $9 million from Matrix Partners India. Prio to that, the company secured seed funding from a clutch of angel investors: Binny Bansal, Kunal Shah (Founder of Cred), Bhavish Aggarwal and Ankit Bhati (Founders of Ola), and Manish Patel Founder of Mswipe.
Founded in early 2017 by Ankush Aggarwal (Bhavish Aggarwal’s brother) and Tushar Mehndiratta, Avail Finance caters to India’s blue-collar and underserved segments by providing collateral-free personal loans of upto INR 20,000. The company establishes that there is no interest imposed for a personal loan of INR 5,000 for a month. To scale the potential of the offering, Avail Finance has partnered with a number of players served by the blue-collar workforce, including Ola, Swiggy, Ecom Express, and Quess Corp.
The fintech company claims to have distributed loans amounting to INR 250 crores across 1 million customers as of January 2020.