Nira, Bangalore based fintech startup that provides small value credit to consumers with limited access to traditional modes of finance, has raised $1 million in seed funding from angel investors based in India and the United Kingdom.
The firm will use the fundings to accelerate building out the core team and technology to drive the initial growth of the business.
Founded by Rohit Sen and Nupur Gupta in 2017, the online startup helps people by providing small loans of up to Rs 1 lakh for up to 1 year.
The startup has partnered with Federal Bank to provide loans to consumers at interest rates ranging from 1.5% cent to 2.25% a month, depending on the consumer’s risk score. Loans are repayable over 3-12 months.
In a statement, Rohit Sen, co-founder, and CEO, NIRA told, “The need of the hour is small-sized loans because consumers who earn ₹20,000 –30,000 a month find it very difficult to get loans from banks which expect a good CIBIL score and collateral. We are targeting consumers who are in the early part of their careers who earn modest salaries.”
To apply for credit, the consumer needs to be an Indian citizen, have a college degree, be working for a minimum of six months and earn a salary of Rs 20,000 a month.
“We have been refining our product and strategy over the past few months and our focus will now be on executing our strategy and scaling the size and reach of our operations,” said Sen.
Both Rohit Sen and Nupur Gupta were former Goldman Sachs employees.
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