Anil Ambani’s Reliance Capital Backs Online Lending Startup Billionloans

Online lending platform Billionloans raised $1 million, or around Rs 7 crore, in seed funding from Anil Ambani-promoted Reliance Capital.

Founded by serial entrepreneur Rangan Varadan and co-promoted by former Infosys Chief Financial Officer V Balakrishnan, the startup aims to lend around Rs 2,000 crore over the next three years, it said in a statement on Monday.

Billionloans provides education, affordable housing and personal loans to individuals and also lends to small businesses. It uses technology and data-based credit analysis to assess eligibility and process applications. The company has tied up with financial institutions and banks to facilitate lending.

“Our goal is to fundamentally disrupt how borrowers are sourced and appraised using technology in the quickest possible manner,” said Balakrishnan, one of the early investors in the company and currently the chairman of Billionloans. “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 firm is integrating diverse analytic techniques like psychometric analysis and big data, along with user experience-focused design to make borrowing easier, Varadan, who has co-founded another online lending platform MicroGraam, said in the statement. “We will leverage MicroGraam’s model of building a grassroots partner organisation to connect borrowers and lenders,” he said.

Reliance Capital routed its investment via its wholly owned subsidiary Reliance Corporate Advisory Services Ltd.

Sixteen startups in the online lending space have together raised $64 million (around Rs 425 crore) in the last six months, according to data compiled by BloombergQuint.