InPrime Finserv Secures $3M in Series A Round Led by Matrix Partners India

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Approximately 80% of the Indian population operates within the informal economy, contributing substantially to the nation’s GDP. Within this vast demographic, a prime layer has emerged, characterized by forward-thinking households with diverse income sources, strong credit histories, and a willingness to embrace digital and financial tools for improving their lives. It is estimated that around 50 million such households exist in India, generating an annual credit demand of approximately Rs. 5 lakh crores.

The current financial landscape for this demographic is characterized by reliance on products such as microfinance, gold loans, and two-wheeler finance. However, the absence of products specifically tailored to their needs has led to a fragmented and inadequate experience as they often depend on multiple lenders. InPrime aims to bridge this gap by offering tailored and relevant credit products designed to meet the unique requirements of this prime segment of customers within the informal economy.

Rajat Singh, Co-founder and CEO, InPrime, said, “India’s ambitious target of achieving a $5 trillion economy by 2030 necessitates the informal economy to grow in tandem with the formal sector. InPrime is dedicated to addressing the escalating credit demand within the informal economy, facilitating their contribution to India’s growth story. With the ongoing digital revolution in India, our objective is to provide these customers with superior products and services, ushering in a technology-led financial inclusion 2.0 for informal economy customers at scale.”

Team at InPrime Finserv
Team at InPrime Finserv

On its journey to address a significant challenge within the Indian financial landscape, InPrime has raised $3 million in a Series A funding round. The funding was led by Matrix Partners India, with participation from existing investors, InfoEdge Ventures, Titan Capital, and Kettleborough VC.

This follows a successful seed round in November 2022, where InPrime secured $1.45 million with support from InfoEdge Ventures, Titan Capital, Kettleborough VC, and other prominent investors.

Team at Matrix Partners
Team at Matrix Partners

Avnish Bajaj, Founder and Managing Director, Matrix Partners India, said, “A core part of India’s economic growth is driven by small and medium businesses in the informal sectors of ‘Bharat’. InPrime’s objective of serving this sector with tailored products to help them be part of the $5T and then $10T Indian GDP is incredibly inspiring and necessary.  Led by Rajat, the InPrime team with co-founders Sneh and Manish has all the skills necessary to build a large financial services business and it is a privilege to partner with them on this journey. We are excited to support their mission of empowering small businesses and contributing to digital nation building.”

Building for the Informal Economy

The company’s unique hybrid model integrates seamlessly with the ‘India Stack,’ allowing it to gather digital footprints from credit bureaus, bank accounts, and other sources. This, combined with on-field assessments, enables InPrime to conduct precise evaluations of customers’ needs, financial capacity, creditworthiness, and risk profiles.

InPrime aims to empower customers by offering varied repayment channels, encouraging self-service, and promoting financial independence. This approach aligns with the evolving needs of the prime segment, which is not just seeking credit but also financial solutions that understand and respect their unique circumstances.

Bipin Shah, Partner, Titan Capital commented,“Massive credit gap across semi-urban & rural areas is a known story. InPrime’s focus on this market using phygital model and Rajat, Manish and Sneh’s deep conviction for the segment and their extensive experience of lending business made us jump to be part of their journey.”

By focusing on digital, data-driven, and technology-intensive practices, InPrime intends to provide superior financial and non-financial value to this prime segment. Their mission is to streamline the financial experience for these households, offering products that are not only tailored but also delivered through channels that resonate with the digital transformation occurring within this demographic.

In a statement, Rajat Singh, Co-founder & CEO, InPrime Finserv said, ”InPrime’s mission is to recognize the evolving financial needs of the informal prime customers and build suitable products and services to fulfil these needs. Robust Technology & analytics coupled with essential physical distribution will be core to our strategy which will transcend these customers towards digital financial products.

InPrime Finserv

InPrime Finserv is a brand owned by STK Credit Private Limited which stands as a pioneering force in the financial landscape that is specifically tailored for the prime segment within India’s informal economy. This Non-Banking Financial Company (NBFC), headquartered in Bangalore, is on a mission to redefine how informal customers access formal finance by providing innovative and customized financial products. With an average ticket size of the loans being Rs 1-3 lakhs, InPrime has built a loan book of over Rs 2 crore. With the company receiving its NBFC license in April 2023, it had launched its credit platform in October 2023.

Core Team at InPrime Finserv
Core Team at InPrime Finserv

Founded in December 2021 by Rajat Singh, Manish Raj, and Sneh Thakur, InPrime Finserv brings together a leadership team with over a decade of banking expertise. The trio has held key positions across various domains, including microfinance, rural banking, branch banking, strategy, credit underwriting, credit risk, and collections. Their collective experience, especially from their time at Ujjivan SFB, a prominent Small Finance Bank in India, positions them uniquely to understand the intricacies of serving the prime segment within the informal economy.

Chinmaya Sharma, Partner, InfoEdge Ventures stated, “There have been few changes to this business in the 3000-odd years it has existed for. Winners still tend to ‘differentiate’ themselves largely on their execution. Rajat, Sneh and Manish were leading collections, credit and a substantial proportion of the entire book at one of the most successful small finance banks in the country. When a founding team like this comes together, you have to back their ability to execute.”

Making Finance Simple and Accessible

InPrime Finserv understands the changing needs of families in the informal economy. These households are actively embracing digital technologies and transitioning to a less cash-dependent lifestyle with a credit and financial track record spanning several years. InPrime’s mission is to create financial products that fit these families perfectly.

Home Page of InPrime Finserv
Home Page of InPrime Finserv

In a statement, Rajat Singh, Co-founder & CEO, InPrime Finserv added, ”We are thankful to InfoEdge Ventures, Titan Capital, Kettleborough VC and all our angel investors for supporting us in this journey of taking forward the baton of financial inclusion in India.”

In pursuing this goal, InPrime adopts a hybrid approach, blending traditional and modern practices centered on data, digital technology, and innovation. The lending approach involves thorough field assessments and the analysis of any available digital footprints ensuring that InPrime has a clear understanding of what the customers need. Along with its focus on a hybrid lending approach, it also focuses on a customer-centric strategy which is evident in its offering of a hassle-free onboarding experience, swift turn-around time, multiple repayment channels, and a gamified financial and digital literacy program.

Matrix Partners India

Founded in 2006, Matrix Partners India has been at the forefront of venture capital where it has dedicated itself to supporting emerging startups in the Indian consumer and enterprise markets. With offices located in Bangalore, Delhi, and Mumbai, the firm has played a key role in supporting innovation and growth across various industries.

Core Team at Matrix Partners
Core Team at Matrix Partners

“As far as our philosophy goes, we are “founder backers’. We back founders over markets, even to the extent that if we like a founder and don’t like the market, we will still back the founder. For a founder driven model like ours, it is essentially a people evaluation process which by definition is a judgement call in separating the excellent from the rest.” Said Avnish Bajaj, Founder and Managing Director of Matrix Partners.

Matrix Partners India boasts of a diverse portfolio, featuring category-leading companies such as Razorpay (Payments), Five Star Business Finance (SME Lending), OneCard (Mobile-first credit card), Ola (Mobility), Ola Electric (Electric Vehicles), Dailyhunt (Local language platform), OfBusiness (B2B commerce, fintech), Oxyzo (Tech-enabled smart financing), Captain Fresh (B2B seafood marketplace), Country Delight (D2C dairy & fresh foods brand), GoKwik (E-commerce enablement platform), Jupiter (Neobank), MoEngage (Customer engagement platform), Mswipe (Mobile POS), Stanza Living (Tech-enabled student housing platform), and Zupee (Skill-based gaming), among others.

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