Reliance Corporate Advisory Services Ltd, a wholly-owned subsidiary of the Anil Ambani-promoted Reliance Capital, has made a seed investment of approximately Rs 7 crore ($1 million) in Billionloans Financial Services Pvt Ltd (Billionloans), an alternative digital lending start-up.

According to Reliance Capital, the deal, which was led and structured by its wealth management arm Reliance Wealth Management, is in line with the company’s strategy to expand its consumer lending business across platforms.

Based in Bengaluru and led by ex-Infosys CFO V Balakrishnan, Billionloans is a technology-enabled financial services company, focused on providing flexible and affordable financing options to individuals and small businesses outside traditional banking system. The company was founded by Rangan Varadan, a serial entrepreneur who has also co-founded MicroGraam, an online micro-lending platform.

Billionloans will initially focus on loans to SMEs, affordable housing loans, education loans and personal loans. In the next 3 years, the company plans to facilitate around Rs 2,000 crore of loans across multiple products and lenders.

V Balakrishnan, Chairman, Billionloans, said, “India has a large pool of unbanked population that does not have access to the formal banking system. Technology is going to be a big enabler in addressing this core issue. Our goal is to fundamentally disrupt how borrowers are sourced and appraised using technology in the quickest possible manner. This will lead to a dramatic change in access, both for borrowers with thin credit histories and for lenders looking to expand beyond their traditional customer bases. The investment from Reliance Capital is a great validation of our business model.”

here is company details.

 

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