Tracxn Alternative Lending India Startup Landscape, July 2016
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Transcript of Tracxn Alternative Lending India Startup Landscape, July 2016
Alternative Lending India, July 2016
Contents
Topic Page No.
Scope of Report 05
Entrepreneur Activity 10
Investment Trend 12
Who is Investing 19
Exit Outlook - IPO, Acquisitions 23
Sub Sector Analysis 25
Expert Speaks - Insights from Blume Ventures 36
Interesting Companies 42
Useful Links 44
Company List 46
Team 102
3
Alternative Lending India, July 20164
Illustrative Sectors We Track
OFFLINE
AGRICULTURE
FOOD & BEVERAGE
OUTSOURCING
CONSUMER GOODS
HEALTHCARE
FINANCE
EDUCATION
MEDIA & ENTERTAINMENT
TECH
MOBILE
MARKETPLACES
CONSUMER DIGITAL
ENTERPRISE TECH
FINTECH
ADTECH
HEALTHTECH
EDTECH
SaaS
TECHNOLOGY
CROSS BORDER
Payments
Mobile Payments
Investment Tech
Banking Tech
Alternative Lending
Bitcoin
Forex
Insurance Tech
Consumer Finance
Enterprise Finance
Crowdfunding
Software for Institutional Investors
Alternative Lending India, July 20165
Sector Overview
Scope of report
This report covers lending companies which operate through an online platform and helps lenders with documentation, loan
servicing/operations. These platforms are not backed, operationally, by traditional brick & mortar financial institutions and use
alternative data points for credit scoring. The report also covers companies that enable lending by offering alternate credit
scores to financial institutions, helping people improve their credit scores and aggregating lending products through which users
can check their eligibility.
The online lending platforms have been categorized into consumer lending platforms, business lending platforms and invoice
financing platforms.
Further each of these sub sectors have been divided into following business models:
The scope of this report includes equity as well as debt funding received by the companies.
Business Model Description
Direct Lenders Platforms that are registered as a NBFCs and give loans on their own books
B2C Marketplaces Platforms that tie up with lenders for loan origination. Lenders include financial institutions and banks
P2P Marketplaces Platforms that allow individual investors to offer loans
Alternative Lending India, July 2016
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8
Scope of Report
Entrepreneur Activity
Investment Trend
Who is Investing
Exit Outlook - IPO, Acquisitions
Sub Sector Analysis
Expert Speaks - Insights from Blume Ventures
Interesting Companies
Useful Links
Company List
Team
Alternative Lending India, July 20169
YoY – Number of companies founded
8 9 9 10
28
70
14
0
10
20
30
40
50
60
70
80
2010 2011 2012 2013 2014 2015 2016
Nu
mb
er o
f C
om
pan
ies
Milaap EarlySalary
Alternative Lending India, July 2016
10
10
Scope of Report
Entrepreneur Activity
Investment Trend
Who is Investing
Exit Outlook - IPO, Acquisitions
Sub Sector Analysis
Expert Speaks - Insights from Blume Ventures
Interesting Companies
Useful Links
Company List
Team
Alternative Lending India, July 201611
YoY – Number of Rounds and Total Funding
$1M $3M $0.1M$6M
$0.1M
$4M
$18M
$103M
$68M
1 1 12
1
3
6
22
22
0
5
10
15
20
25
0
24
48
72
96
120
2008 2009 2010 2011 2012 2013 2014 2015 2016
Nu
mb
er of R
ou
nd
sFu
nd
ing
Am
ou
nt
(in
Mill
ion
s)
Funding Amount Number of Rounds
Note: The funding includes debt rounds also.
Alternative Lending India, July 2016
17
17
Scope of Report
Entrepreneur Activity
Investment Trend
Who is Investing
Exit Outlook - IPO, Acquisitions
Sub Sector Analysis
Expert Speaks - Insights from Blume Ventures
Interesting Companies
Useful Links
Company List
Team
Alternative Lending India, July 201618
Most Active Investors in Sector
7
5
3 3 3
2 2 2 2 2
0
1
2
3
4
5
6
7
8
Sequoia Capital AspadaInvestments
Accion SAIF Partners WaldenInternational
Aarin Capital Accel Partners DSG ConsumerPartners
Elevar Equity Kalaari
Tota
l Nu
mb
er o
f D
eals
CreditVidya
Alternative Lending India, July 2016
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21
Scope of Report
Entrepreneur Activity
Investment Trend
Who is Investing
Exit Outlook - IPO, Acquisitions
Sub Sector Analysis
Expert Speaks - Insights from Blume Ventures
Interesting Companies
Useful Links
Company List
Team
Alternative Lending India, July 201622
Major Acquisitions
Date Company Acquirer Deal Size OverviewTotal
Funding
Jul-2015 apnapaisa.comAPNAPAISA
(Mumbai, 2007)andromedaloans.com Undisclosed
Online marketplace for loans and investment productsSequoia Capital, Jafco Asia, Intel Capital, ChrysCapital
$20.2M
Andromeda, a Direct Sales Agent acquired apnapaisa.com in stock and cash deal. APNAPAISA has disbursed loans worth more than INR 5000 Crores and has 100K+customers
Apr-2015 rupeepower.comRupeePower
(Gurgaon, 2011)snapdeal.com Undisclosed
Online platform for personalized loan rates and insurance quotes
Undisclosed
RupeePower was acquired by Snapdeal in a cash and equity deal reported to be around $50M. The company has disbursed loans worth INR 1500 Crore in FY15
Alternative Lending India, July 2016
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23
Scope of Report
Entrepreneur Activity
Investment Trend
Who is Investing
Exit Outlook - IPO, Acquisitions
Sub Sector Analysis
Expert Speaks - Insights from Blume Ventures
Interesting Companies
Useful Links
Company List
Team
Alternative Lending India, July 201624
July 2016Tracxn BlueBox : Alternate Lending - India
Cumulative funding in the sector
150+ companies in the sector, 38 funded since 2011, $171M invested in 2015/16
24
0
20
40
60
80
YoY Startups Founded
0
50
100
150
YoY funding trend (in $M)
Alternative Lending India, July 201625
Top Business Models by Funding
$104M
$96M
$21M
$5M
0
24
48
72
96
120
Loan Comparison Platforms Commercial Loans Consumer Loans Credit Scoring andCredit Score Improvement Platforms
Tota
l Fu
nd
ing
Am
ou
nt
(in
Mill
ion
s)
# Cos. 43 32 68 11
CreditVidya
Alternative Lending India, July 201626
Loan Comparison Platforms – Entrepreneur Activity and Investment Trend
Alternative Lending India, July 201628
Credit Scoring and Credit Score Improvement Platforms – Entrepreneur Activity and Investment Trend
Alternative Lending India, July 201629
Credit Scoring and Credit Score Improvement platforms – Most Funded Companies
Alternative Lending India, July 201631
Commercial Loans – Entrepreneur Activity and Investment Trend
Alternative Lending India, July 2016
34
34
Scope of Report
Entrepreneur Activity
Investment Trend
Who is Investing
Exit Outlook - IPO, Acquisitions
Sub Sector Analysis
Expert Speaks - Insights from Blume Ventures
Interesting Companies
Useful Links
Company List
Team
Alternative Lending India, July 201636
Tracxn Presents Investor Insights on Alternative Lending Sector, In collaboration with
Karthik Reddy Managing Partner, Blume Ventures
DhanasreeAnalyst, Blume Ventures
Rohan ParanjpeyPrincipal, Blume Ventures
Adit ParekhPrincipal, Blume Ventures
Alternative Lending India, July 2016
Tracxn Presents Investor Insights on Alternative Lending Sector
37
Alternative Lending India, July 2016
Tracxn Presents Investor Insights on Alternative Lending Sector
38
Alternative Lending India, July 2016
41
41
Scope of Report
Entrepreneur Activity
Investment Trend
Who is Investing
Exit Outlook - IPO, Acquisitions
Sub Sector Analysis
Expert Speaks - Insights from Blume Ventures
Interesting Companies
Useful Links
Company List
Team
Alternative Lending India, July 201642
Deadpooled Companies
Company Overview Business ModelFunding Amount
finrek.comFinrek
(2014, Jaipur)Online marketplace for loan offers
Loan Comparison Platforms $50K
kreditkonnection.comKredit Konnection(2015, Mumbai)
B2C Marketplace for personal loans Consumer Loans > Personal Loans > B2C Marketplace
instaloans.inInstaloans
(2015, Bangalore)Platform for personal loans Consumer Loans > Personal Loans >
B2C Marketplace
finnovo.inFinnovo
(2015, Hyderabad)Advance loans on invoices/receivables Commercial Loans > Working Capital
> Alternate Financing > Discounting
loansetu.comLoansetu
(2015, Delhi)Marketplace Connecting Borrowers and Lenders
Commercial Loans > B2C Marketplace
hedwic.comHedwic
(2015, Hyderabad)Peer to peer lending platform Consumer Loans > Personal Loans >
P2P Marketplace
instakash.inInstaKash
(2014, Bangalore)SMB lending platform for terms loans and automobiles
Commercial Loans > B2C Marketplace
smefinancemart.comSMEFinancemart(2014, Gurgaon)
Finance facilitator for MSMEsCommercial Loans > B2C Marketplace
Alternative Lending India, July 2016
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43
Scope of Report
Entrepreneur Activity
Investment Trend
Who is Investing
Exit Outlook - IPO, Acquisitions
Sub Sector Analysis
Expert Speaks - Insights from Blume Ventures
Interesting Companies
Useful Links
Company List
Team
Alternative Lending India, July 201644
Useful Links
Title Content Platform Link
List of All Companies in readable format Companies Link
Upcoming Sectors Entrepreneur Activity Link
Recent Transactions Investment Trend Link
Acquisitions till date Exit Outlook - IPO, Acquisitions Link
Deadpooled Companies Companies Link
Fintech India Business Models Link
Fintech India Landscape Link
Alternative Lending India, July 2016
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45
Scope of Report
Entrepreneur Activity
Investment Trend
Who is Investing
Exit Outlook - IPO, Acquisitions
Sub Sector Analysis
Expert Speaks - Insights from Blume Ventures
Interesting Companies
Useful Links
Company List
Team
Alternative Lending India, July 2016
COVERS THE FOLLOWING SECTORS
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement PlatformsLoan Comparison Platforms
Alternative Lending India – Company List
46
Alternative Lending India, July 201647
Commercial Loans (1/11)
47
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Company Details Funding Investors
B2C Marketplace
Indifi [Gurgaon, 2015]: Indifi is a SME lending platform which aims to connectsmall businesses with formal lending institutions and enable disbursementswithin four days from application. It collects a fee for the services provided tolenders – from marketing, to data collection and analysis, and on-grounddocumentation and verification. Claims to have partnered with travel andticketing platform, cab aggregator and ecommerce company. It has raised fundingfrom Accel Partners, Elevar Equity, Pramod Bhasin, Rajan Anandan, GauravDalmia, Abhishek Goyal, Gagan Hasteer and Arun Tadanki.
Accel Partners, Elevar Equity
B2C Marketplace
Biz2Credit [Noida, 2011]: Biz2Credit is an online credit resource for startups andsmall businesses. It is an online marketplace bringing together lenders and fundseekers to get small business loans, lines of credit, equipment loans, workingcapital and other business funding options. Partners include Axis Bank, DeutscheBank, Indiabulls, Bajaj Finserv, Bank of Maharashtra, etc. Indian subsidiary ofBiz2Credit which has raised $250M from Direct Lending Investments.
B2C Marketplace
Loan Frame [Mumbai, 2015]: Loan Frame is a SME lending marketplace. Usesproprietary technologies to originate, underwrite and distribute small businesslending products. The company builds its own credit score, with traditional andnon-traditional credit metrics.
Alternative Lending India, July 201648
Commercial Loans (2/11)
48
Company Details Funding Investors
B2C Marketplace
InstaKash [Bangalore, 2014]: Instakash aims to empower small businesses usingthe lending platform. They are currently offering terms loans and line of credit tosmall businesses and car owners who are partnered with Ola, Uber, Taxiforsure orMeru. Uses proprietary algorithm to arrive at alternate credit scores. Claims thatthe application process can be completed in minutes and loan is processed in 72hours. The company has a NBFC license. Has received undisclosed amount offunding from angel investors.
B2C Marketplace
SMEFinancemart [Gurgaon, 2014]: SMEFinancemart is a web based venture thatenables MSMEs to access funding and government schemes. The company worksas a business advisory platform where it helps facilitation of timely credit flow tomicro & small businesses. It assesses the needs of MSMEs and in consultationwith them chooses the most appropriate product and suitable lenders who havethe matching risk appetite. It further submits a quality application to the lenderfor loan sanction.
B2C Marketplace
Namaste Credit [Bangalore, 2014]: Online maketplace for business loans whichmatches funding needs of businesses with lenders. The platform helps with ratingthe business and submitting the required information and paperwork to multiplelenders in order to get approval for then needed capital. Also offers acustomizable financing program for businesses with less than perfect credit score.Uses its risk scoring algorithm to match borrowers to financial in a secureenvironment.
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201649
Commercial Loans (3/11)
49
Company Details Funding Investors
B2C Marketplace
ZoukLoans [Delhi, 2015]: ZoukLoans is an online lending platform offeringcollateral free working capital loans and secured term loans. The company hastied up with 60 lenders and claims to have screened 1100+ applications. Lendingpartners include BNP Paribas, Bajaj Finserv, Citibank, Karvy Finance amongothers.
B2C Marketplace
CoinTribe [Delhi, 2015]: CoinTribe is a lending marketplace offering business andpersonal loans. Claims that the loan is approved in 10 minutes. The company usesa proprietary algorithm to link multiple data sources ranging from the creditbureau to social media to determine the credit worthiness of an SME. As of April2016, the company was getting upto 30 applications on a daily basis. Backed byPuneet Dalmia, MD of Dalmia Cements.
B2C Marketplace
SMELending [Bangalore, 2015]: SMElending.com is a lending marketplace thatconnects buyers, business sellers, and lenders. The company uses non-traditionaldata points to reduce the operational risk & costs of lending. Smelending.com is abusiness initiative of Innoviti Payment Solutions. It also claims to be present in30+ cities and distribute 400 loans daily with Rs. 400 crores distributed annuallyand claims to have 20,000 registered buyers.
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201650
Commercial Loans (4/11)
50
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201651
Commercial Loans (5/11)
51
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201652
Commercial Loans (6/11)
52
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201653
Commercial Loans (7/11)
53
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201654
Commercial Loans (8/11)
54
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201655
Commercial Loans (9/11)
55
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201656
Commercial Loans (10/11)
56
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201657
Commercial Loans (11/11)
57
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201658
Consumer Loans (1/24)
58
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201659
Consumer Loans (2/24)
59
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201660
Consumer Loans (3/24)
60
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201661
Consumer Loans (4/24)
61
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201662
Consumer Loans (5/24)
62
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201663
Consumer Loans (6/24)
63
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201664
Consumer Loans (7/24)
64
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201665
Consumer Loans (8/24)
65
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201666
Consumer Loans (9/24)
66
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201667
Consumer Loans (10/24)
67
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201668
Consumer Loans (11/24)
68
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201669
Consumer Loans (12/24)
69
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201670
Consumer Loans (13/24)
70
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201671
Consumer Loans (14/24)
71
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201672
Consumer Loans (15/24)
72
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201673
Consumer Loans (16/24)
73
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201674
Consumer Loans (17/24)
74
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201675
Consumer Loans (18/24)
75
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201676
Consumer Loans (19/24)
76
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201677
Consumer Loans (20/24)
77
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201678
Consumer Loans (21/24)
78
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201679
Consumer Loans (22/24)
79
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201680
Consumer Loans (23/24)
80
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201681
Consumer Loans (24/24)
81
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201682
Credit Scoring and Credit Score Improvement platforms (1/4)
82
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201683
Credit Scoring and Credit Score Improvement platforms (2/4)
83
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201684
Credit Scoring and Credit Score Improvement platforms (3/4)
84
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201685
Credit Scoring and Credit Score Improvement platforms (4/4)
85
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201686
Loan Comparison Platforms (1/15)
86
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201687
Loan Comparison Platforms (2/15)
87
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201688
Loan Comparison Platforms (3/15)
88
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201689
Loan Comparison Platforms (4/15)
89
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201690
Loan Comparison Platforms (5/15)
90
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201691
Loan Comparison Platforms (6/15)
91
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201692
Loan Comparison Platforms (7/15)
92
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201693
Loan Comparison Platforms (8/15)
93
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201694
Loan Comparison Platforms (9/15)
94
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201695
Loan Comparison Platforms (10/15)
95
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201696
Loan Comparison Platforms (11/15)
96
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201697
Loan Comparison Platforms (12/15)
97
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201698
Loan Comparison Platforms (13/15)
98
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 201699
Loan Comparison Platforms (14/15)
99
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 2016100
Loan Comparison Platforms (15/15)
100
Commercial Loans Consumer LoansCredit Scoring and Credit Score
Improvement platformsLoan Comparison Platforms
Alternative Lending India, July 2016
101
101
Scope of Report
Entrepreneur Activity
Investment Trend
Who is Investing
Exit Outlook - IPO, Acquisitions
Sub Sector Analysis
Expert Speaks - Insights from Blume Ventures
Interesting Companies
Useful Links
Company List
Team
Alternative Lending India, July 2016102
Team
Prasanna Munot,
Analyst – Fintech India
Zerish Nazir,
Lead Analyst – Fintech India