Lending

Fintech start-up Wishfin seeks to raise up to $ 50 million

Bombay: The online marketplace for consumer loans and other financial products Wishfin will raise up to $ 50 million in its next fundraiser as it seeks to make acquisitions in niche segments, said a senior manager of the company.

“We do not have an exact figure decided. However, the entries for the next fundraiser are in the range of $ 35-50 million, ”said Puru Vashishtha, Chairman of the Board of Mywish Marketplaces Pvt. Ltd, which owns and operates Wishfin.

“We will continue to strengthen our credit activity and we want to increase it considerably over the next two years. Second, our credit card business has grown rapidly since demonetization. This continues to be a key focus area and we see significant growth in it over the next two years, ”said Vashishtha.

Founded in 2009 by Vashishtha and Rishi Mehra as Deal4loans, the company re-branded itself in March last year as Wishfin after expanding its product offering to include mutual funds and mutual fund products. insurance under one platform. The company has partnered with over 40 financial institutions including HDFC Bank Ltd, ICICI Bank Ltd, State Bank of India, HDFC Ltd, SBI Cards and Payment Services Pvt Ltd and Bajaj Finserv Ltd, offering personal loans, loans studies and home loans. loans as well as other financial products.

The company claims to have 9 million customers and $ 3 billion in disbursements to date.

“We have a very advanced technological capacity on the customer acquisition side. 100% of our acquisitions are internal. Wishfin’s customer acquisition algorithm incorporates machine learning across all channels and we are able to offer the technology we have built in-house to third parties as a ‘technology as a service’ platform. Vashishtha said.

In July 2016, Franklin Templeton International Services India invested $ 15 million in Mywish Marketplaces. Following the transaction, three senior executives representing the company’s existing investors joined the board of directors, including Vivek Kudva, Managing Director of Franklin Templeton Investments in Europe, Middle East, Africa and India; Alok Sethi, president of Franklin Templeton Services; and Samir Sood, representing WhatsApp CEO Neeraj Arora, who invested in the company in April 2016.

“Franklin is a long-term investor and has been successful in building great financial services companies around the world. They helped us at Wishfin by providing a global context as a contribution. In addition, they helped us with our strategy in the area of ​​mutual funds, ”said Vashishtha.

Wishfin competes with competitors such as Gurugram-based PolicyBazaar (ETechAces Marketing and Consulting Pvt. Ltd) and Chennai-based BankBazaar (A&A Dukaan Financial Services Pvt. Ltd), some of which have recently raised funds from investors. private and strategic. Policy Bazaar, for example, raised Rs 500 crore, or roughly $ 75 million, for a valuation of $ 500 million from new and existing investors, including private equity funds True North and IDG Venture Partners.

Vashishtha insists that evaluation is not the only criterion. “We don’t really think too much about valuations at this point. Even during the previous fundraiser, we did not accept offers from investors who offered us the highest valuation. It is important to have like-minded investors, ”he added.

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