Shubh Loans raises $1.5 million in a pre-Series-A funding round

Datasigns Technologies, the operator of online lending platform Shubh Loans, has raised $1.5 million in pre-series-A funding round from SRI Capital, BeeNext and Pravega Ventures. The firm is expected to use the funding to build its technology team and expand to 25 markets from currently served 7. Datasigns Technologies earlier raised an undisclosed amount of angel funding from Sanjai Vohra, former MD of JP Morgan, V Bunty Bohra, India CEO of Goldman Sachs, and Peeyush Misra, former partner at Goldman Sachs.

Started in 2016, Shubh Loans is a vernacular language app that builds a proprietary credit score and report for loan applicants, who can then borrow from any of the nine banks and NBFCs on the platform. Since its launch, over 60,000 customers have built their credit score using Shubh Loans. Sashi Reddi, founder of SRI Capital, said that “Many massive companies are going to be built in this space, finally being able to lend to the next 200 million consumers. Shubh Loans will be one of them”. The online platform claims to have a monthly growth rate of 50% and aims to bring over 10 lakh people into the formal banking system through its lending and credit-building product.