Lending startups look for funding as liquidity situation eases

Mumbai: Several lending startups in India are returning to raise fresh equity because of an easing of the liquidity situation. Digital lending startups, including Capital Float, Lendingkart and Rubique are looking to hit the road to raise fresh equity, according to two people aware of the matter Rubique is in the initial stages of its fundraise, while Capital Float is in talks with investors to raise up to $150 million, Mint had reported on 4 December. “We were planning to raise fresh money in September last year, but like several others, we had to put our plans on hold,” said Manav Jeet, managing director and chief executive officer of Rubique. “Investors get cautious during such a time and valuations become a concern when a sector is facing headwinds.” Several digital lending startups, which saw their disbursements halve following the liquidity crisis, have turned more optimistic and have begun to revisit their fundraising plans, said a venture capital investor on condition of anonymity. “Liquidity is quite robust now, significantly better than what it was in the immediate aftermath of the IL&FS event, and NBFCs with good track record continue to see traction from banks, financial institutions and even alternative investment funds,” said Ranvir Singh, founder and managing director, Kissht, which allows consumers to pay for their online orders in monthly instalments, without a credit card.