True Balance scored $10m in debt funding for its non banking financial firm, True Credits.
The investment was raised from Northern Arc and other investors from India and Korea. Founded in 2014 by Charlie Lee, with its India operations launched in 2016, True Balance aims to use the new capital to help it break even.
Using an internal alternative credit scoring system as well as a machine learning-based underwriting model, the firm supports and funds new-to-credit and low-credit customers. So far, True Balance says the unit has disbursed over $30m in loans focusing on the underbanked and financially excluded segments of India’s population.
Commenting on the new financing, True Balance CFO Vishal Bhatia said, “This round of funding will be fortifying the collective effort by startups such as us and the government to make India a stronger economy as we move forward towards growth.” He added that the FinTech firm is expecting additional funding of $40m.
This development comes after True Balance – operated by Balancehero India, secured $28m in a Series D fundraise in November last year from SoftBank Ventures Asia, and South Korea-based investment firms Naver, BonAngels, Daesung Private Equity and Shinhan Capital.
True Balance’s Series D round came a little over a year after the company raised $23m in its Series C round from investors including NH Investment & Securities, IMM Investments, D3 Jubilee Partners and Shinhan Capital.
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