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Bengaluru, June 20, 2022: FinBox, a B2B credit infrastructure fintech, today announced a fundraise of $15 million (INR 115 Cr.). A91 Partners led this round with participation from Aditya Birla Ventures and Flipkart Ventures. Existing investors Arali Ventures also participated in the round.
FinBox will use this capital to scale its offerings and expand to South East Asia. The company announced that it’ll also be doubling its current workforce to power its expansion.
Through its Embedded Finance Stack and data intelligence suite, FinBox is on track to facilitate the disbursement of more than Rs 20,000 crore in credit by March 2023 through its ecosystem of more than 50 partners, including NBFCs, Banks, and FinTechs.
FinBox’s technology enables any digital platform (both fintech and non-fintech)to launch digital credit products such as BNPL, Personal loans, Working Capital loans, Invoice Financing, etc while its Data Products provide the requisite intelligence to make optimum credit decisions.
“The future of financial services lies in every company and brand providing a curated set of offerings to their own users in their own platforms and ecosystems. This not only improves trust but also the velocity of transactions and helps users get the financial products they want, wherever they want them. We enable that by allowing any company including fintechs, banks, and conglomerates to offer 100% digital products within a matter of days,” says Rajat Deshpande, CEO and co-founder of FinBox.
Deshpande added that the goal at FinBox is to take the complexity out of financial services and make it easier to build and launch newer, more effective products without hard work.
“Financial services are moving out of the physical premises into the palms of the users, this requires credit and underlying value chains to be reimagined and built from the ground up for a digital-first era. FinBox is the most prominent credit infrastructure player in the region and we back the team to lead this transformation. FinBox is well placed to become the leading infrastructure player for banking-as-a-service internationally too,” said Kaushik Anand, Partner, A91 Partners.
Apart from its API stack, FinBox provides credit risk intelligence to more than 25 Banks, NBFCs, FinTechs, and credit marketplaces. Its alternate data product suite predicts and helps price credit risk and further drive collections and cross-sells to borrowers.
“Our data products including our proprietary scores create an instant trust between lenders and millions of borrowers thus enabling us and our lender partners to create automated yet low-risk lending workflows for deeper financial inclusion,” said Anant Deshpande, Co-founder, and head of data products, FinBox. “We realized early that responsible use of alternate data for underwriting can be a game-changer for lenders in India where less than 50% of credit eligible population is able to prove its creditworthiness and access credit.”
FinBox counts the likes of ZestMoney, Khatabook, TrueBalance, Home Credit India, IIFL, large conglomerates, telcos, banks, NBFCs, and other Fortune India 500 companies among its clients.
Financial services infrastructure for the digital age
The thesis - the company says - is that credit architecture hasn’t evolved much in the last five decades and has become obsolete for the digital age. Hence, it needs to be recreated with an emphasis on seamless digital onboarding, instant underwriting for even new-to-credit borrowers, empathetic collections, and distribution through large non-financial platforms such as super apps or B2B ecosystems such as accounting apps, agricultural platforms, retail tech companies, etc.
“We invested in FinBox early as we saw their potential to build world-class credit infrastructure. The team has executed it to perfection as they have now become the infrastructure + credit intelligence partner of choice for large lenders and enterprises. There’s an opportunity to extend this play to other banking services and FinBox is on the right track. We’re very excited to be a part of this journey,” Arun Raghavan, Founding partner, Arali Ventures
This strategy of non-financial companies getting into financial services by launching products such as BNPL, loans, or credit cards is called Embedded Finance. Embedded Finance providers such as FinBox enable any enterprise or lender to launch financial services without having to build the technology in-house or recruit hundreds of people to run it.
Piyush Bansal, Head, Aditya Birla Ventures affirmed that the adoption of embedded finance offerings is rising worldwide and that this rise is coupled with an equally large number of banks and financial institutions that wish to modernize their own offerings.
“We are bullish on embedded finance as a space and are confident that with their sound domain understanding and strong tech capabilities, the founding team at FinBox is well placed to leverage the growing opportunity that this space provides. The investment is in line with our vision to back outstanding founding teams in building the businesses of tomorrow. Our endeavour is to open up our global ecosystem and networks for the growth of our portfolio companies.” – Piyush Bansal, Head, Aditya Birla Ventures.
Deshpande started FinBox in 2017 along with three other co-founders, including Anant Deshpande, Srijan Nagar, and Nikhil Bhawsinka.
Helping every company become a FinTech
With more than 25 anchor platforms using FinBox Embedded Finance Stack to launch and scale credit products, FinBox is now going after large enterprise clients across lenders and conglomerates. The wave of digitization and decentralization of finance is prompting even the legacy companies to recraft their offerings and FinBox is already working with many Nifty50 companies to launch new-age financial services.
Rajat Deshpande added that the company’s vision of powering credit for India’s 10 million small and medium enterprises will be fulfilled through an ecosystem play - where the user is at the center of the value chain and products and delivery are innovated around them. Embedded Finance infrastructure makes formal credit accessible, digital, and financially viable for all stakeholders.
“We are driven to change the unit economics of the current lending setup such that lending becomes an opportunity for value creation and capture. There are already thousands of high-frequency platforms where Indian entrepreneurs aggregate to run their business ops such as accounting apps, HR tech apps, retail apps, B2B eCommerce platforms, GST ecosystem, etc. - our financial services stack enables these platforms to launch innovative credit products for their users and become their financial services providers of choice”- Rajat Deshpande, Co-founder, and CEO, FinBox.
For more information, contact:
Ankita Saha, email@example.com | +91 90515 11054
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FinBox Quick Facts
More than 3 million API calls a day across the Embedded Finance Stack
Dozens of lenders and 25+ platforms across B2B and B2C markets use FinBox Embedded Finance Stack
FinBox CollectX is a collections intelligence product that has helped digital lenders reduce delinquencies by ~30% on their loan portfolios
FinBox DeviceConnect is used to assess more than 2.5 million borrowers a month and is set to launch in Vietnam this financial year
FinBox was the first to launch Account Aggregation based underwriting for its partners and has seen conversion rates improve by more than 55% for lending journeys while borrower fraud has reduced to zero
Selected for the latest RBI Sandbox cohort for MSME lending.