BankBazaar.com, one of the leading financial marketplaces, today raised INR 375 crores ($60 million) in its Series C round of funding led by Amazon India with participation from Fidelity Growth Partners and Mousse Partners. Existing investors Sequoia Capital and Walden International also participated in the funding round.
The story so far
Established in 2008, BankBazaar is one of India’s first neutral online marketplaces that gives consumers access to customized rate quotes on loans, credit cards or personal finance products such as insurance policies, bank loans and credit card offers. They offer their services through Web and mobile platforms. Twenty-three of India’s leading financial institutions and insurance firms have chosen to integrate themselves with BankBazaar.Through the platform, consumers can search for tailor-made offers, compare, and customize it as per their requirements.
Since the last round of funding, BankBazaar’s business model has evolved. They claim that the number of transactions on the platform have grown five times since then. The company is actively expanding its product portfolio and depth of its partnerships in each product line and is also focusing on their mobile web service and mobile apps in order to enable larger connect with the audience. They have found that 40% of users connect to BankBazaar through smartphones. Additionally, they found that online loan applications across home, personal, and auto loans are growing by 90%, compared to 15% growth offline.
Apart from the above services, they also give the consumer latest trends and insights into managing their finances better. The consumers can also track their application and troubleshoot issues in the process through channels like WhatsApp, Email, Voice-support, the BankBazaar mobile app etc.
Where will the funding go?
BankBazaar.com also plans to launch other personal finance products to help consumers clinch the best deals. With this round of investment, BankBazaar is positioning itself to grow its consumer base that is looking for financial products online and making it simple for consumers seeking financial products in India.
The funds will be primarily deployed towards technology integration, hiring and strengthening partner relationships and to creating an end-to-end customer experience. The company will also invest to upscale its marketing and branding effort to reach out to a larger number of consumers and create a household financial services brand in India. BankBazaar is also investing heavily on its mobile app, which is available on both the Android and iOS platforms. Adhil Shetty, CEO, BankBazaar.com added,
With the rapidly evolving online consumer segment across categories, we have seen great demand for this platform. We are currently looking to expand the category as we reinvest all earnings in growing the business intelligently. This investment from Amazon, Fidelity Growth Partners & Mousse Partners reposes faith in our vision and gives us strength to achieve the next phase of growth for the company.