Mumbai: Suvidhaa Infoserve Pvt. Ltd is looking to raise $10 million in equity via a private placement for growth needs as it aims to enter the non-banking finance company (NBFC) business, said a top company official on Thursday.
“We are raising close to $10 million through equity by March 2017 for growth purpose. It will come through issue of shares to new investors. We are shifting our focus to lending to obtain non-banking financial company (NBFC) licence in the coming months,” said Paresh Rajad, founder-chairman, Suvidhaa Infoserve.
Suvidhaa is a payments company which offers financial services such as remittances, utility bill payments, insurance premium payments, value-added services and recharges.
This will be the fourth round of fundraising by the Mumbai-based company and will take place after a gap of five years. It had raised $12 million from Japanese conglomerate Mitsui & Co. Ltd in its third round of funding.
Some of the investors in Suvidhaa include leading global venture capital firm Norwest Venture Partners, Reliance Assets Management Co. Ltd, and seed funding by Shapoor Pallonji Mistry.
Suvidhaa, founded in 2007, featured among the 41 entities that applied for a payments bank licence after the Reserve Bank of India (RBI) issued guidelines in November 2014. Its application was rejected as it failed to qualify on the parameters set by the RBI.
Meanwhile, Suvidhaa has also tied up with India’s third largest private sector lender Axis Bank Ltd to launch an unsecured micro loan product for the urban low income segment by way of term loan and overdraft (OD) facility.
The product is defined for people earning income close to Rs.7,000-Rs.8,000 monthly, said a top official of Axis Bank.
The borrowing facility can be availed of only by an estimated one million Suvidhaa customers who have a transaction history of more than 12 months with the payments company. It has a customer base of 35 million customers across India.
Credit amount ranging from Rs.7,500 to Rs.15,000 can be disbursed depending upon the need of the clients. The OD facility is like a working capital loan with a one-year tenure. Customer pays interest rate only for the amount utilized.