Today Fintech startups are largely credited for simplifying the hassles of our day-to-day payment. However, they can equally play a big role in clearing the mess of non-performing assets (NPAs) that is currently plaguing the growth of India’s banking sector. One such startup happens to be Perfios, which has just announced a fresh funding round. The Bengaluru based company has announced raising $50 Mn dollars in the latest series B round led by group of PE investors. Two PE investment firms – Warburg Pincus and Bessemer Venture Partners – primarily led the funding round.
Perfios is essentially a credit analytics company that helps financial institutions in correctly assessing the credit worthiness of borrowers. It does this by financial data aggregation and assessment, assessing wide range of financial data – from regular financial statements, tax returns to outstanding credit dues. The company currently claims to be working with over 200 financial institutions including NBFC and small Fintech companies.
Commenting on the funding, V.R. Govindarajan (founder of Perfios) said that the company plans to utilize the latest fund infusion for product development, ramping up R&D and expanding footprints across lucrative Asian markets. As part of the international expansion, the company plans to enter Middle East, North Africa and Southeast Asia.
Mr. Govindarajan further added that the company will be exploring the possibility of acquisitions in these market. However, the founder did not provide any specific timeline as to when the company plans to enter these markets.
Industry experts claim that Fintech startups Perfios hold a promising future, given that rising NPAs have emerged as a major pain point for India’s financial sector. India’s financial sector needs to have a robust methodology at disposal for correctly assessing the credit worthiness of borrowers and thereby control the menace of NPAs, experts added.