ftcash, a Mumbai, India-based fintech startup that provides merchant cash advances to micro merchants, has raised 50 Crores (approx. $7.2M) in Series A funding.
The round was led by Accion and the Dutch development bank FMO with follow on participation from IvyCap Ventures.
The company intends to use the funds to accelerate product development and expand into new geographies.
Founded in 2015 by Sanjeev Chandak, Deepak Kothari and Vaibhav Lodha, ftcash focuses on improving access to credit for informal micro merchants that are largely underserved. It 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 on-time loan payments.
Incubated by PayPal and part of the six teams selected globally for the Mastercard StartPath Program, the company has delivered financial services to over 30,000 merchants.