Non-bank lender Happy raises $20 mn to grow loan portfolio

Non-bank lender 'Happy' Wednesday said it has raised USD 20 million (about Rs 140 crore) in fresh capital at an undisclosed valuation to grow its small business-focused portfolio. The two-year-old company, which has a book of Rs 140 crore to 32,000 borrowers, has also garnered lines of finance from institutions like DMI, an official statement said. The latest funding will help the company grow its loan portfolio to over 1 million loans over the next fiscal and reduce loan fulfilment times to below one minute, it said.

The company, which claims its loans are less costly than informal borrowing, did not disclose the investors who had pooled in the fresh capital. "Making one million small loans means building a loan portfolio of over USD 500 million and catalysing economic wealth of USD 10 billion for micro and small enterprises in a single year, its co-founder and managing director Manish Khera said.

He added the small loans help create greater business opportunities, stabilise cashflows, and enhance livelihoods for small business owners. The company also plans to expand its technology platform, which is enables instantI-driven lending with over 20 partners, the statement said.