Loanadda

lendingonline loans

FOUNDING YEAR: 2015
LOCATION: India
Last Update: 08/09/2020

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About

LoanAdda is an online aggregator of financial products, which gives quick and custom solutions for all your financial needs. LoanAdda is built for Speed and Clarity.

MEDICI Analysis

Focus

PRODUCTS & SERVICES

Home Loan Loan Against Property Personal Loan Business Loan Working Capital Loan Priority Sector Lending Credit Card

REVENUE MODEL

Upon disbursal, LoanAdda earns a commission-based fee from the lending partner based on the volume of business. We also co-lend with partner financial institution where we charge an interest to the consumers for loans provided.

PRIMARY PROBLEM SOLVED

There are 456M Indians living without access to any formal sources of credit . The biggest problem is limited access to credit for unbanked customers and poor guidance in facilitating loans. Although more than 50% of Indian adults hold an account with a financial institution, only about 6% of them have borrowed from a formal institution . With high entry barriers to formal banking and lack of education adding to their woes, these customers remain outside the periphery, pushing them deeper into poverty. This problem is further aggravated by the fact that customers usually do not know which lender would be the best fit for their profile , going from pillar to post to get a loan. The Bottom of the Pyramid customers have no access to formal sources of credit and hence depend on informal sources with ROI as high as 120% which pushes them deeper into the vicious cycle of poverty. A poor / moderate income person doesn’t have an Income tax return, is mostly illiterate, has no access to formal sources of credit- we cater to them by finding the right lender under who’s parameters he / she can fit. Our proprietary algorithm integrates the credit parameters of all major banks/ NBFC’s with the customers credit profile to arrive at the best fit option.

INTELLECTUAL PROPERTY

Patent(s) NOT_FILED

company provided insights

Traction

REVENUE

$100k - $499k

ACTIVE USERS:

900000

People

FOUNDERS

Anshuman Mishra

BOARD MEMBERS AND ADVISORS

NA NA

NUMBER OF EMPLOYEES

11-50

INVESTORS:

ah! Ventures

PRAAK Investments

RATNAAFIN

Momentum

FUNDED

NO

TOTAL FUNDING

$500 K

DATE OF LAST FUNDING

May 2020

SEED & PRIOR FUNDING

$500 K

SEED CLOSED ON

Nov 2016

LISTED

NO

Innovation Programs

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LoanAdda

About

LoanAdda is a fintech company delivering custom-tailored financial services with focus on under-banked customers coalescing technology with operations to connect with the right lender, while handholding at each step to simplify consumer experience.

Focus

PRODUCTS & SERVICES

Home Loan Loan Against Property Personal Loan Business Loan Working Capital Loan Priority Sector Lending Credit Card

REVENUE MODEL

Upon disbursal, LoanAdda earns a commission-based fee from the lending partner based on the volume of business. We also co-lend with partner financial institution where we charge an interest to the consumers for loans provided.

TOP PROBLEM SOLVED

There are 456M Indians living without access to any formal sources of credit . The biggest problem is limited access to credit for unbanked customers and poor guidance in facilitating loans. Although more than 50% of Indian adults hold an account with a financial institution, only about 6% of them have borrowed from a formal institution . With high entry barriers to formal banking and lack of education adding to their woes, these customers remain outside the periphery, pushing them deeper into poverty. This problem is further aggravated by the fact that customers usually do not know which lender would be the best fit for their profile , going from pillar to post to get a loan. The Bottom of the Pyramid customers have no access to formal sources of credit and hence depend on informal sources with ROI as high as 120% which pushes them deeper into the vicious cycle of poverty. A poor / moderate income person doesn’t have an Income tax return, is mostly illiterate, has no access to formal sources of credit- we cater to them by finding the right lender under who’s parameters he / she can fit. Our proprietary algorithm integrates the credit parameters of all major banks/ NBFC’s with the customers credit profile to arrive at the best fit option.

PRODUCT DEVELOPMENT STAGE

V2.0 or BEYOND

KEY DIFFERENTIATORS

LoanAdda uses big data analytics and artificial intelligence to connect borrowers to an appropriately matched lender, using a personalized approach at each step to simplify the consumer experience. LoanSwift (LoanAdda’s proprietary software) is based on AGILE methodology and has built in modules which take more than 100 data points including both traditional and non-traditional parameters. The customer can apply for and track the progress of their application both on the app and web platform. LoanAdda helps the customer throughout the entire process from identifying necessary requirements, processing loan applications, and picking up documents until successful loan disbursal. Currently, the capital accessible from Banks is not reaching the under-served due to stringent legacy parameters which work on the concept of exclusion and bankers being traditionally sceptical of customer’s intent to repay. "LoanSwift"- solves this by identifying which Bank, NBFC, Microfinance Institution, Housing Finance Company or Peer-to-Peer lending platform’s parameters fit the current customer’s capacity and creditworthiness to borrow or not. The company is able to compete successfully due to the focus on the entire value chain rather than just lead origination, which is what most competitors are focusing on. The Company is able to achieve conversions of over 8% as against an industry average of 1-2%, due to the smart filtering using its proprietary algorithms which push only relevant leads to the lending partners thus enabling a higher conversion rate. Due to its focus on priority sectors, the Company also facilitates the customer at every point in the process ensuring they identify the best product, properly evaluate the necessary documentation, and receive both pre and post disbursal checks and compliances.

PRIMARY CUSTOMER TYPE

Enterprise - Banks or Financial Institutions

Small and Medium Business - Online Retail

Small And Medium Business - Other

Consumer

PRODUCT ATTRIBUTES

SaaS

Customer facing

STRATEGIC CLIENTS AND PARTNERSHIP

HDFC Bank : Channel Partner

ICICI Bank Limited : Channel Partner

Bajaj Finserv : Channel Partner

IIFL : CoLending partnership

Indiabulls : Channel Partner

Traction

ANNUAL REVENUE:

$100k - $499k

ACTIVE USERS/ACCOUNTS:

900000 Million

LIVE USERS/TRANSACTIONS:

Yes, in live production

How will you grow the number of users/accounts/transactions?

LoanAdda acquires customers both offline and online. Online, we source leads both from our website and app. Due to extremely strong SEO on web and app, targeted to BOP customers, we are able to reach them organically with minimum acquisition cost.

CHANNEL STATUS

MULTIPLE CHANNELS

People

NUMBER OF EMPLOYEES

11-50

TEAM COMMENT:

The founding team brings in a collective experience across Industries like Finance, Credit underwriting, Tech,Marketing.

Momentum

FUNDED

YES

FUNDING COMPLETED

NO

LISTED

NO

FUNDING SERIES
Seed
Nov 2016