Info-tech

Digital lending start-up, Qbera in talks to raise $15 million

Sangeetha Chengappa Bengaluru | Updated on June 21, 2019 Published on June 21, 2019

Aditya Kumar, Founder & CEO, Qbera.com

Digital lending start-up, Qbera is in talks to raise $15 million in Series B funding, which it expects to close by the year end. The start-up has raised $5million to date.

With total loan disbursals of ₹130 crore since its inception in February 2017, of which ₹90 crore were disbursed in FY 2019, the Bengaluru based start-up is targeting loan disbursal of ₹300 crore in the current fiscal and expand deeper into smaller cities and towns.

Qbera provides loans to potential borrowers who are overlooked by banks and financial institutions. These borrowers make up a large segment of the population and include individuals with incomes less than ₹6 lakh per annum. The start-up offers personal unsecured loans of ₹1 lakh-₹10 lakh in 24-48 hours to salaried individuals who are between 25 – 34 years of age. Interest rates range from 11 per cent to 30 per cent, payable in 1-5 years.

“We have just launched our Series B fund-raise for $15 million, which we expect to close by the year end. The funds will be used to further our growth, product expansion, technology, data sciences, hiring and expansion into Tier-2,3,4 cities. When we last raised $3 million in September 2018, we were disbursing ₹3.5 crore worth of loans per month, achieving ₹15 lakh in revenue. Today, we are disbursing ₹12 crore in loans per month and achieving ₹55 lakh in revenue” said Aditya Kumar, founder and CEO, Qbera.

“While we currently serve salaried individuals with a median income of ₹30,000 a month, we have recently expanded our target segment to include employees of proprietorships and partnerships” added Kumar.

Qbera reaches consumers in over 180 cities across 16,000 pin codes.

Asked about its Non-Performing Assets, he said, “We have managed to maintain a certain asset quality with an NPA of 0.6 per cent.” The start-up has a risk sharing arrangement with its institutional partners such as RBL Bank, IndusInd Bank, IIFL, YesBank and Fullerton India, where it takes on the first 1-2 per cent of principal loss, in exchange for which it is given the flexibility to originate loans to a larger set of consumers to whom the partner institutions cannot directly lend.

Published on June 21, 2019

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Sincerely,

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.