LoanKuber raises $1.25M as a fragment of its ongoing Pre-Series A round

LoanKuber, a micro-business digital mortgage platform, today said it has raised $1.25 million in its ongoing pre-Series A funding round led by investors LetsVenture, AngelList India, and Accolade.

Saurabh Nagpal, CEO of LoanKuber, said of the fundraising, “The funding would enable us to accelerate our mission of providing affordable and transparent mortgage finance to MSMEs, we would strive to achieve our social goals while balancing both growth and profitability that are required to build a large impact-focused financial institution.”

The funds will be used to expand the company's team, improve the existing tech stack, and rapidly grow its Assets Under Management to Rs 75 crore in the next 12 months.

LoanKuber, founded in 2016 by IIT Delhi alumni Saurabh Nagpal, provides micro-SMEs, semi-skilled professionals, and everyday services for business expansion with mortgage loans ranging from Rs 3-10 lakh.

LoanKuber is a transparent and one-of-a-kind online marketplace for small business loans.

Based on its proprietary underwriting algorithms, the company offers customized mortgage loans to underserved MSMEs. And as part of its expansion plan, the company hopes to onboard 10,000 MSMEs in the next 12 months.

“Today, around 40 percent of total MSME credit demand is still served by informal sources of credit. This underserved market is a huge potential for MSME lenders such as LoanKuber to cater to, with their innovative business models tailored specifically to the needs and behavior of this segment,” said Sunitha Ramaswamy, President, Early Stage, LetsVenture.

LoanKuber had previously raised a seed round of $1 million in 2018.

They only work with reputable financial institutions that are dedicated to providing financial assistance to India's emerging and growing small and medium enterprise sector.

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