Digital Lender Prest Loans Raises $250K in Funding
Digital lending platform and RBI registered NBFC, Prest Loans has secured debt funding of about $250K (appr. Rs. 16.5 crore) from multiple lenders. The lenders include AU Small Finance Bank, INCRED, MAS Finance, Northern Arc Capital (earlier IFMR) and other who have been with the company from very early stage itself.
The company claims that it has seen 10X growth in lending on YoY basis and is on aggressive expansion plan. The promoters have also recently infused another about $100K (Rs. 65 lakh) in equity to further strengthen the technology platform and meet the growing demand of credit.
On this development, Ashok Mittal, Founder & CEO of Prest Loans said, “The funding is an indication of confidence shown by lenders in our business. We got excellent support from various lenders within the first year of our operations and could raise debt largely due to strength of the business model, processes and technology being used. Some of our lenders have provided multiple tranches of credit based on our growth and track record. We have been growing our portfolio steadily month on month basis and have planned for robust growth in the portfolio in next few years.”
The company started its operations from Feb 2017 and has processed more than 3000 loan applications. It has disbursed loans to about 400 small business and MSME units from various sectors like auto ancillary, retailers, textiles, education & training, food processing etc. representing tier l and ll cities. With an average ticket size of Rs. 5 lakh, the company has disbursed new loans worth Rs. 15 crore in last financial year. Most of the borrowers are small time traders and manufacturers who don’t have access to formal credit from banks. The company has planned for aggressive expansion with the help of strengthening its tech driver lending platform.
