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FinTech Startup ftcash Raises Rs 50 Cr from Accion, FMO and IvyCap Ventures

ftcash’s new round of funding will be used to accelerate product development and expand into new geographies

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Mumbai-based fintech startup ftcash has raised Rs 50 crore in a Series A round led by global nonprofit Accion and the Dutch development bank FMO with follow on participation from IvyCap Ventures, an Indian VC fund.

ftcash’s new round of funding will be used to accelerate product development and expand into new geographies.

"By using transaction data for credit assessment and leveraging repayments from the ftcash payments platform, ftcash is pioneering a model that can reach 60+ million micro-merchants in India, 96% of whom have been underserved by banks and traditional finance companies,” said Sanjeev Chandak, Co-founder and CEO, ftcash. Chandak says he took his inspiration for ftcash from the large potential of MSMEs and their role in growth of the economy, evident from his days at Deutsche Bank and Capital One.

“From day one, ftcash’s mission has been to bring change to the financial system so that small businesses can have faster and easier access to credit,” said Chandak. “With this round of funding and the expertise of our phenomenal investors and advisors, we are positioned to connect millions of underserved micro-merchants to financial services that can advance their lives."

ftcash focuses on improving access to credit for informal micro merchants that are largely underserved. ftcash uses a proprietary algorithm to analyze payments and alternative data for originating loans and deducts collections directly from merchants’ digital payments. Additionally, ftcash matches merchants’ digital cash flows to credit due dates, increasing the chances of ontime loan payments.

“With micro merchants often struggling to access the financial services they need to grow, ftcash’s innovative use of data and digital platform is making it easier for these businesses to secure the financing they need to thrive,” said Michael Schlein, President and CEO of Accion. “Our investment in ftcash represents an opportunity for Accion to continue its work helping financial services platforms leverage partnerships, technology and data to increase financial inclusion for micro merchants in India,” said Radhika Shroff, Deputy Chief Investment Officer of Accion Global Investments.


“The innovative proposition of ftcash is stimulating small and micro entrepreneurship development and financial inclusion in India. FMO is very pleased to support economic development globally by catalysing the establishment of more stable and inclusive financial systems in emerging and frontier markets.” said Ronald Janse, Manager Private Equity at FMO.

 “We have been a part of ftcash's journey from the beginning and the company has grown from strength to strength. There is tremendous potential in the small and micro lending segment, and ftcash is well positioned to be a leading player, with its proprietary algorithm and end-to-end customer relationship. We look forward to working closely with the new partners to scale the company to its new heights," said Vikram Gupta, Founder & Managing Partner, IvyCap Ventures.  

ftcash was founded in 2015 by Sanjeev Chandak, Deepak Kothari and Vaibhav Lodha. The company has delivered financial services to over 30,000 merchants. ftcash was incubated by PayPal and was a part of the six teams selected globally for the Mastercard StartPath Program. Late last year, MIT awarded ftcash as the Most Innovative Future of Work in the World. In 2016, it was also awarded The Great Tech Initiative award by The Duke and Duchess of Cambridge during their visit to India.

In addition to the investment, Accion is providing advisory services to help ftcash scale its current business and develop new product lines and business models. 


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