On the 8th of June 2022, Kissht, a consumer loan fintech business, raised US $80 million in a new round of funding led by Vertex Growth and the Brunei Investment Agency.
Existing investors Vertex Ventures SEA India and Endiya Partners participated in the round. The fintech company’s current round of funding values it at around US $500 million.
According to the company, the funds will be utilized to improve product design, increase card issuances to US $10 million in the next 12-18 months, and expand its book size while enhancing its technological backend.
What the founder has to say:
Founder, and chief executive of Kissht- Ranvir Singh:
“We’ve been concentrating on credit and saw payments as a natural extension of our services.” The goal of creating a card was to allow clients to smoothly use their credit for all services, products, and even small-ticket offline purchases like groceries. Rather than the one-time personal loan, which is quite episodic, this allows clients to use the credit for recurrent transactions and boosts engagement.
Kissht’s non-banking financing corporation (NBFC) arm will issue the cards. Singh also mentioned that the company focuses on attracting consumers through offline channels by embedding its credit offers at the point of sale in mid-scale department shops.
What the investors have to say:
James Lee, managing partner of Vertex Growth:
“Kissht’s founders have had a unique grasp of the needs of India’s new-to-credit population. The multi-service credit and payment offering will change the way millennials and other new borrowers think about and utilize credit.”
About the company:
Kissht, founded in 2015, now offers users a credit line and unsecured personal loans. Its platform has about 3.2 million users, with more than half of them logging in at least once a month.
Aditya Birla Health Insurance is a corporation partner that provides health-related insurance. The vertical continues to account for a minor portion of overall revenues.
On average, the platform disburses Rs 580 crore ( USD 74.5 million) in loans every month, with the average ticket size of Rs 13,500 (USD 173). The company has an active loan book of Rs 900 crore (USD 111.5 million).
Along with the funding, the business said it would enter the challenger card market, offering Ring buy-now-pay-later cards to clients with a credit line in collaboration with RBL and SBM Bank.
Jupiter, Uni, Slice, and OneCard, among others, compete fiercely in the challenger card segment. The Reserve Bank of India (RBI) has always been consulting participants and the wider industry better to understand the operations of the new-age card-based credit fintech firms, intending to regulate the field in the coming months.
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