Xtracap Fintech, a Gurugram-based startup which is designed to accelerate local GDP by moving small businesses in small towns from unorganized to organized environment, announced that it has raised $1 million in angel round of funding.
The company plans to access 500,000 small businesses in a serviceable market of 8 million retailers in small cities and towns of India in the next 7-8 years. The company will form a 100% distribution subsidiary to create a distribution network support with assistance from local partners in 250 high consumption districts of India in the next 5 years. The startup had launched its mobile app – Bridge2Capital in October 2018 for small shopkeepers to receive limited loan amount to pay their GST supplier bills.
Xtracap said it has managed Rs 70 crore worth of invoice financing providing credible financial integrity to small shopkeepers, under its limited geographical operations, in Rajasthan, Punjab, and Telangana.
The startup aims to target about two million retailers in a serviceable market of 14 million retailers covering 1,500 plus locations.
“With increase in digital adoption, this time period will shrink in the future due to the unprecedented COVID-19 situation,” said Xtracap founder Mohammed Riaz.
According to this startup, since launch of the app, it has seen an overall customer increase from less than hundred to over 1,000 shopkeepers. It has crossed over 30,000 registrations across India.
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