Chennai-headquartered digital bank Kaleidofin has secured Rs 36 Crore (appr. $5 million) in a Series A funding round, which was led by impact investment firm Oikocredit. Existing investors Flourish, Omidyar Network India, Blume Ventures and Bharat Inclusion Seed Fund also took part in Kaleidofin’s round.
The company aims to assist the underbanked by helping them access modern financial products. Kaleidofin has partnered with financial institutions, mutual funds and insurance firms in order to serve the underbanked and unbanked population. The company uses the latest technology to customize its products and services by examining relevant data on demographic profiles, income sources, and asset ownership.
Sucharita Mukherjee, co-founder and CEO at Kaleidofin, stated:
“At Kaleidofin, we have reimagined the way financial services are designed and accessed by the lower income groups.”
Mukherjee explains that his firm takes into account the financial “roadblocks and vulnerability” that these members of the population currently face, including unstable income streams and “limited understanding of the fine print” in financial products and services.
The company revealed that it has around 50,000 clients based in 10 different states in India and works cooperatively with about 30 network partners, which include several microfinance firms, corporations, and non-governmental organizations (NGOs). The latest investment notably marks Oikocredit’s first equity investment in India’s Fintech industry.
Kaleidofin was among the finalists for the Social Enterprise category in The Economic Times Startup Awards 2019.
Anirudh Sarda, equity officer at Oikocredit, remarked:
“India is witnessing a transformational change in the way financial services are available and accessed, especially in the underbanked sector. We want to promote and be part of the responsible offering of savings and insurance products to the low-income segments of the population.”