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Indian FinTech OKCredit raises $67 million from Lightspeed, Tiger Global in Series B

Aditya Prasad

Aditya Prasad, Co-Founder, OkCredit

OkCredit, an Indian FinTech firm helping small merchants to digitise their credit and payment transactions, has raised $67 million in a Series B funding from Lightspeed and Tiger Global. Morningside Venture Capital, Venture Highway and Y Combinator also participated in the round.

With this round, the company closed about $83 million in the last two months, it said in a statement.  Earlier in June, OkCredit raised $15.5 million in a Series A funding round led by Tiger Global.  Before this, it raised a seed funding from Lightspeed in 2018.

Lightspeed India’s Partner Harsha Kumar said, “Lightspeed has been investing in the SME segment in India for years now, and we deeply appreciate how complex user acquisition is for this segment. OkCredit represents a rare breed of companies that are discovering digital and viral growth in a market where traditionally, feet-on-street was the only acquisition strategy. We are fortunate to witness this transition along with a team that is deeply connected to its customers and is solving with a first-principles approach to product development.”

Owned by Psi Phi Global Solutions Pvt. Ltd, OkCredit was founded by Harsh Pokharna, Gaurav Kumar and Aditya Prasad in 2014. The aim was to disrupt how small businesses and retailers used to manage their credit books, which is also called “Bahi Khaata or Udhaar Khaata in Hindi. With OkCredit’s mobile-based application, merchants can digitally keep track of sales and purchases and even send payment reminders without having to record it on physical notebooks manually.
The Bengaluru-based company has 6.5 million registered merchant base and has grown 100 times since January this year by solving a simple problem of digitising the physical books meant for recording credit and payments. Other players in this segment are Mosambee and BharatPe.

On the opportunity, the company said that in India on an average, 30-40% of all merchant sales happen on credit. The percentage varies by sector – higher (45 – 50%) in grocery. Besides, 65% of all purchases made by a retailer happen on credit. For 60 million merchants and retailers representing a $1 trillion market, this is a huge opportunity, when 60% of your business runs on credit, managing credit cycles becomes a core need.

The company has been doubling in scale and has reached a base of nearly 2 million monthly active merchants all in less than 24 months from launch. OkCredit is used for both B2C and B2B credit transactions by merchants across industries and Tier 1- 4 cities in India.

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