These are some Fintech startups that have raised funding today:
1. BharatPe plans to raise US$ 150-200M in equity funding
India-based BharatPe is a pioneer in UPI payments and digital money lending for merchants. It develops a QR code-based payment app for offline retailers and businesses.
Amount to be raised: BharatPe announced on 5 January 2021 that it is planning to raise US$ 150-200 million in equity funding and US$ 500 million of debt. This will be the biggest fund-raise for the startup.
BharatPe will be raising the first tranche of US$ 100 million equity by March and the debt will be raised over a period of two years. The company had raised US$ 75M in February 2020 in its Series C round led by NY-based hedge fund Coatue Management and Palo Alto-based Ribbit Capital.
Valuation: BharatPe’s valuation might rise to US$ 1B, making it the seventh fintech unicorn of India.
What the CEO has to say: “We are more excited about the debt we are raising from international banks and financial institutions, as we look to create an India-focused credit fund. Fintech is moving towards lending and debt will become much bigger than the equity market,” said CEO Ashneer Grover.
What the funding is for: BharatPe is planning to launch its wholesaler financing product ‘BharatPe DtoR’ this month. DtoR stands for distributor to retailer. It will underwrite wholesalers and extend them a credit line. Distributors can offer this to their end-retail partners and small-shop owners.
The debt will be utilized to support its lending operations with new products and enter new retail segments.
2. Oxygen raises US$ 17M in Series A Round
San Francisco, US-based startup Oxygen is a digital banking platform that develops tools for consumers and small businesses through its financial platform designed for the 21st-century economy. It was launched in January 2020.
Amount raised: Oxygen raised US$ 17 million in Series A round of funding on 4 January 2020.
Participants in the round: S7V, 1984.vc, EFG Hermes Runa Capital, Rucker Park, and Inventures, and prominent fintech investors, Frank Strauss, Global CEO of the Private & Commercial Bank for Deutsche Bank AG, William Hockey, Co-Founder of Plaid, Ankur Nagpal, Founder and CEO of Teachable, Peter Treadway, and NFL wide receiver Larry Fitzgerald.
What the CEO has to say: “We are humbled that our investors are putting their faith in us with this most recent round of funding. This investment not only validates what we’ve built but also enables us to continue pursuing our vision of building financial tools that integrate seamlessly with the digital world of today and delight our customers. We founded Oxygen because we wanted to provide financial services in the same way people interact with technology in their everyday lives. We didn’t see that and believe this led to exclusion for many. This is an important milestone, but we are just getting started,” said Hussein Ahmed, Oxygen CEO.
What the funding is for: As Oxygen is on its rapid growth trajectory with a highly engaged customer base, it requires funding to support its growth.
What Investors have to say: “Oxygen is the premier banking platform for today’s digital consumer. Their all-in-one banking app serves both consumers and businesses, ranging from tech-savvy consumers who are just looking for a better banking experience to burgeoning entrepreneurs and small businesses looking for digital banking solutions that meet their strict requirements. It’s banking done better,” said Andre Bliznyuk, General Partner of Runa Capital, which led the Series A round.
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