FINTECH START-UP NIRA GETS $2.1M FUNDING
NIRA is founded by former Goldman Sachs employees, Rohit Sen (CEO) and Nupur Gupta (co-founder) raised a series A Funding.
Start-up investments are in the news all the time and with the amount of money they raise is seen the funding rounds. FinTech’s NIRA is a start-up that offers small ticket loans to blue and grey collared workers. It raised a series A funding from angel investors in UK, India and Europe.
NIRA is founded by former Goldman Sachs employees, Rohit Sen (CEO) and Nupur Gupta (co-founder). It offers loans up to INR 100,000 for up to one year through its app-based credit line.
NIRA believes that financial responsibility is discriminating what one wants to have based not on luxury but on the consideration of whether it is of utility in the long run or not. Their vision embodies the idea. Simply put, it is, to create “A world where everyone has access to fast, frictionless finance, at a rate that is fair and competent.”
NIRA definitely has thought out of the box, and the entrepreneurs with their mission/vision are seeking after being of use to the society. Some of the features of NIRA working to make borrowing loans easier are as follows:
- It says it is Fair to You, meaning if one can repay the loans on time, the customer gets better interest rates.
- They believe in Instant Decisions After a 3-Minute Application, curtailing the red tape and enabling the user to fill up the form online, and deciding whether they are eligible for a loan or not.
- NIRA does not ask for fine print. The customer pays Interest only on what they use. Even if the customer qualifies for a larger loan, he or she pays interest only on the amount of money he/she takes for the time they have signed up for.
- Finally, NIRA does not require the customer to have a CIBIL score. They keep their doors open for First-Time Borrowers. The customers who are new to credit need not worry. However, if someone does have a CIBIL score, they expect the customer to have a score 681 or higher.
Conceived in 2018, the start-up is now operating pan India with thousands of customers from over 100 cities.
The funds it has raised will be used to hire new talents, develop its product and technology further and increase its lending volumes, as stated by the founders.
“We’re delighted to move to the next phase of our journey with this new raise. While we did get offers for funding from a couple of VCs, we decided to stick to our existing investors and take more time to find the right long-term partners" said Rohit Sen, Chief Executive Officer and co-founder of NIRA.
He also added that in the past year they have been able to find a good market and hence want to expand their firm to be of service to their growing number of customers.
The commendable part is that the funding has been raised by the Bengaluru-based firm at a time when the blue-collared and grey-collared workers are uncertain of their jobs in the near future. The world is standing on the edge of a Global Recession, having gone through an exhaustively long two-month lockdown, to stop the spread of coronavirus.
The white-collared jobs are under threat too, but reports say that around 100-120 million blue-collared workers have been victims of layoffs or have not been paid their salaries, as the medical emergency has been declared.
In India, these blue and grey-collared workers form the edifice of most industries be it in any sector. Yet, this sector and these people have been hit the hardest during the pandemic. The jobs of these workers are predicted to decline further if India is not able to contain the virus.
NIRA raising these funds is evidence that there is hope for such workers to prosper with the transparency, simplicity, flexibility and ease of access provided by the loans NIRA offers. Credit flow is app-based and fully aids to the customer’s financial security.
Looking at the entire week that went by, a total of fifteen Indian start-ups raised funding, of which ten received a total sum of about $62 million. Among them, Daily Hunt (which is the Local language news aggregator) raised the highest funding of about $35.6 million followed by Pratilipi (which is an Audio and video-focused vernacular storytelling platform) which raised $10 million.
The boost to such start-ups is the result of the promising aspects of the start-up. Having a detailed business plan, being able to answer questions like ‘what is new?’ or ‘what is unique?’, being able to return to the investors, and something that has not been done before facilitates in raising funds for a start-up.
In line with the vision of NIRA is the idea of being suited to many, being easy and customer-oriented or customer-friendly. With further advancement in their technology and talent, the funding will be utilised to its entire worth.
Edited by Shraddha Jha
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