Homegrown digital lending infrastructure company Kudos has raised an undisclosed amount in pre-series A funding from multiple fintech founders and angel investors including Nithin Kamath of Zerodha, Nitin Gupta of UNI, Nischal Shetty of WazirX, Patanjali Somayaji of Walnut, Sumit Maniyar of Rupeek, Anish Achuthan of Open Banking, Ganesh Rao of NOCP, Amit Choudhary of DawaaDost, Vaibhav Domkundwar of Better Capital and the entire leadership team of OneCard.
“Kudos is staring at one of the most interesting opportunities in Indian fintech. Their traction and month on month growth without having raised institutional capital is a testament of their PMF (product market fit) and of the massive opportunity to power digital lending in India,” Vaibhav Domkundwar, founder and CEO, Better Capital said in a statement.
Kudos claims to be profitable and is planning to raise their first large institutional round of funding in coming months.
“We are profitable and growing month-on-month and adding partners across agriculture, fintech, edtech, revenue-based financing and other segments faster than ever,” Pavitra Walvekar, Co-Founder and CEO, Kudos said in a statement.
“We are preparing to raise a Series A to scale and become the largest company in the space over the next 18 months,” he added.
The Pune based company had earlier raised an undisclosed amount in pre series A funding last year from Rohit Chanana, former Hero Corporate Services president and founder of Sarcha Advisors, as per news reports.
They provide a range of lending related backend services for fintech companies which makes onboarding customers and disbursing loans a lot easier and faster. Their platform takes 4.5 seconds to process a loan and has facilitated 2 million loans worth ₹2000 crore so far, they claim.
Their tech stack includes over 40 APIs covering everything from onboarding, authentication, underwriting, collection and disbursement, allowing any fintech company to go live and lend digitally in two days. It also allows its partners to offer personalised lending solutions to meet customer and sector-specific requirements.
According to Research and Markets, India’s digital lending market is expected to grow from $110 billion in 2019 to $350 billion in 2023. Despite pandemic, as per news reports, lending apps such as MoneyTap have seen 40- 50% quarter-on-quarter (QoQ) growth in disbursements.
Digital lending has come under a lot of scrutiny in last few months after several lending apps were found to be disbursing loans without being linked to a NBFC and for threatening users to recover loans. In January, RBI had formed a working group to examine the risk of digital lending by unregulated players.
