Paragon leads $30m Series B for Indian fintech player

Paragon contributed $10.5 million with existing investors Quona Capital, Accion Venture Lab, Bharat Shah and other high net worth individuals also committing capital. In addition, SMEcorner founder Samir Bhatia (pictured) invested in a personal capacity. Previously, the company raised a $12.8 million Series A round last year.

Founded in 2014, SMEcorner extends business loans to small and medium-sized enterprises (SME) via an online application process that emphasizes speed and affordable interest rates. The company uses artificial intelligence-enabled credit checking to make disbursements within three days. It is said to have about 8,000 users on the platform and wants to reach 20,000 in the next few years.

Two-thirds of SMEcorner's INR5.5 billion ($75 million) book comprises unsecured business loans or property-backed loans made primarily to shopkeepers. It disburses loans in 15 cities. The company has set a target of doubling the size of its loan book by the end of the next financial year. 

“SMEcorner’s high tech and touch model makes it uniquely positioned to facilitate credit to the highly underpenetrated micro and small enterprises segment. The asset-light model powered by several co-lending partnerships makes the business resilient from liquidity challenges and a highly granular loan book makes it resistant to any lumpy asset quality issues,” said Siddharth Parekh, a co-founder at Paragon.

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• Topics
• South Asia
• Financials
• Expansion
• India
• Fintech
• Paragon Partners