Digital lending platform mPokket has raised up to Rs 500 crore (60.98 million) in debt capital from the private credit platform of BPEA Credit, per an announcement.
Established in 2016, the startup offers credit, insurance, and career acceleration products to the underserved youth of India, including young working professionals and self-employed individuals.
The funding it raised from BPEA Credit includes a greenshoe option and will be used to meet the growing credit demand, the company said in a statement.
Currently, mPokket’s customer base stands at around 24 million.
“The partnership with BPEA Credit strengthens our mission of building the consumer credit economy in India with high-affinity financial security and income-expansion offerings for our growing young customer base,” said Gaurav Jalan, founder and CEO at mPokket.
Meanwhile, Kanchan Jain, head of BPEA Credit Group, added: “Our financing solution helps mPokket serve the growing needs of the underserved youth and is in line with our philosophy of providing bespoke growth capital to established industry leaders with good governance and risk-mitigation framework.”
mPokket claims to have disbursed loans worth $1.7 billion in value with minimal default rates and healthy profit margins.
BPEA Credit, a prominent performing private credit manager in Asia, provides growth capital to established mid-market companies. It is currently understood to be in the process of launching an India-Southeast Asia fund with a targeted size of $750 million.
“We intend to launch the fundraising process in the first half of 2024, with the initial closing anticipated later this year,” Kanchan Jain, Head of BPEA Credit Group, had earlier told DealStreetAsia.