At MoneyOnClick, we use an innovative social selling distribution model to provide joint-liability unsecured family loans to 100Mn+ lower-middle income families in small cities that existing lenders don’t serve (microfinance+ segment). Unlike other lenders, we evaluate the credit worthiness of the family and provide a joint liability loan to the family vs providing personal loans. Given our focus on “India 2” customers in small cities, we onboard financially literate freelancers across the small towns and cities of India and are selling our loans through them.
We provide large ticket/long tenure non-payday loans to these customers to fulfil non purchase usecases such as education, medical treatment, wedding expenses and miscellaneous family emergencies. For our customer segment, the only choice for unsecured large ticket loans is to approach informal money lenders/loan sharks who charge atrocious interest rates. We compete against Informal moneylending which is estimated to be approx. $300bn industry annually.
We have raised $4.25 Mn seed round (one of the largest in India) from some of the top VCs such as Kalaari Capital ( Indian VC with $650MN AUM and investments such as Myntra, Cure.Fit, Dream11 ), Picus Capital ( Fund run by Alexander Samwer- Co-Founder of Rocket Internet that had multiple billion $+ exits/IPOs), 3one4 Capital (Fund run by cofounders of Infosys- a $40 bn tech giant – Mohandas Pai, Narayan Murthy and Nandan Nilekani) and Orios Ventures (Early stage fund with companies like Ola and Pharmeasy in its portfolio)