Lending startup SlicePay has bought Delhi-based P2P lending platform Trustio in an all equity deal which the former hopes will strengthen its team, product portfolio and infrastructure. Trustio, launched last year, enables alumni of a select number of colleges access to short-term credit sourced from their colleagues utilizing a credit scoring model that relies on education, professional experience and backer numbers.
“We have been getting many inbounds from NBFCs (non-banking financial companies) over the last few months as we have established that there is a huge market of new-to-credit customers,” indicated SlicePay Cofounder Rajan Bajaj. “We have seen multiple cycles of credit disbursal and have been consistently maintaining NPAs under 0.8% which is very encouraging for a debt investor.”
Founded in 2015, SlicePay operates on a buy now, pay later model through which students can purchase products on credit without collateral. Repayments can be made on a monthly basis. The platforms has also partnered with Amazon, FlipCart, Paytm and Myntra. Blume Ventures backs SlicePay, the digital payment platform for college students.
“We decided to join the SlicePay team as we had a very similar philosophy focused on cost effective distribution and data-driven risk management that is a must have for this business,” added Trustio CEO and Co-Founder Pranay Bhardwaj.
Trustio is backed by Axilor Ventures and Zostel chief executive Dharamveer Singh Chouhan.