01 March 2017, India:
Gurgaon-based RedCarpet announced that the firm has raised $2.5 million in a fresh round of funding led by Lightspeed Venture Partners.
The fresh funds will be utilized to upgrade the technology behind risk evaluation, introduce new student-lending features, hire data scientists and deepen market penetration.
“At one point, the team was contemplating alternative forms of lending that are less risky, but for now they have decided to stick to student microlending since the market potential is huge and a winner is yet to emerge,” an employee stated to ET.
RedCarpet lends to customers in India to finance their online purchases – e-commerce, travel, etc. In India, credit and finance companies are able to service less than 3% of the customer base because there is no data, no widespread credit bureaus to profile and score customers. RedCarpet has access to much more data, including data on your mobile phone. The company uses this data to service customers who never had any access to credit before.