India-based OYE! Fintech, which operates online lending platform OYE! Loans has netted $2.25m in funding from GAIN Credit.
OYE! Fintech, is a wholly owned subsidiary of GAIN Credit. The funds from the round will be used to strengthen its underwriting models aimed at new-to-credit consumers.
Capital will also be used to scale up operations, and grow its enhance its footprint over multiple cities.
OYE! Loans is an alternative lending platform for people with little or no credit history and are unable to access traditional lines of funding. The company’s lending partner is Northern Arc Capital (IFMR Capital), and its one-year EMI loans can be taken out from INR 10,000 ($150) to INR 100,000 ($1,500).
Its technology uses alternative data points to assess borrowers and provides funding within two business days.
OYE Fintech Pradeep Rathnam president said, “GAIN Credit’s investment in OYE! enables us to accelerate our plans to build scalable India-specific credit products with a focus on robust alternate credit scoring and fraud detection machine-learning models. As a result, we will be much better placed in identifying the right customers, setting the optimum loan amounts, and delivering compelling value propositions in a seamless, frictionless manner.”
India has had a very active year for funding, with over 10 companies to close transactions last month. Fellow online lending platform PayMe India has closed a $2m angel round of funding and SME working capital provider Capital Float netted $22m in its round.
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