India based fintech startup, Microfinance Ai has raised $200K in pre-Series A round funding led by We Founder Circle.
The round also witnessed participation from FAAD Network, Gujarat University Start-up and Entrepreneurship Council (GUSEC), Saurabh Aggarwal (Co-founder Fitso), Ankit Prasad (Founder & CEO Bobble AI), and from other angel investors.
Microfinance.AI which operates under Uthaan Technologies Pvt Ltd, and promotes a digital mobile platform that allows users to avail micro-financial services digitally through trusted partners. Additionally, the platform offers convenience by allowing users to access the information in their regional language.
Currently, the startup has two institutional partnerships to offer financial services for micro-credit borrowers. Over the period the platform has witnessed that the majority of borrowers availing services on Microfinance.AI are women, experiencing digital financial services for the first time, availing micro-loans through mobile phones.
Speaking on the Investment Neeraj Tyagi, Co-Founder & CEO, We Founder Circle said, “All the financial platforms in some of the other formwork as extended arms of the Indian traditional banking system. With a huge population, the ultimate aim of 100% financial inclusion invites aggressive participation from innovators like Microfinance.AI.”
“In addition to this, the size of the market, the low penetration rate, and the high rate of growth make this industry an attractive investment area. The finer technology used by players like Microfinance.AI, just makes it a more lucrative creation that is going to create a bigger difference in the overall growth of the nation,” Tyagi added.
“Coming from a tier 2 & tier 3 city myself & with my personal vast experience in financial services & angel investing, I have realized that those startups who are creating a mass product for digital inclusion of Bharat, are going to be sure winners in the long run. Microfinance.AI founders have the unique advantage of the best global education pedigree from premier institutes like LSE and hands-on experience of working with low-income category consumers on the lending side. And so they are well poised to create a large impact company,” Gaurav VK Singhvi, Co-Founder We Founder Circle added.
Commenting on the fundraise, Kapil Patil, Co-Founder of Microfinance.AI said, “Microfinance.AI primarily focuses on providing a digital platform for availing micro-financial services and empowering local-language preferred users with customized knowledge delivered in bit-size content. We’re building a platform where 500M+ local language people can avail financial services through their mobile and delivered through trusted partners,”
“With the fast-growing economy, the financial need is also increasing and the only way to meet this huge scale is by adopting technology. We have been working with the vision to build a tech platform which will promote financial inclusion for all,” Swati Sinha, Co-Founder of Microfinance.AI further said.