Fintech startup CoinTribe helps SMEs get loans quickly

CoinTribe is a fintech startup founded by three people who have a lot of experience in the banking and finance industry, namely: Amit Sachdev, Rohit Lohia and Manish Chaudhari. After spending nearly twenty years in the banking and finance industry, the founders founded the fintech startup, CoinTribe during May 2015 to provide loans to SMEs. Read more on Fintech Startups

“As consultants, we were exposed to the banking leadership which wanted a more diversified clientele and had a strong desire to build their SME lending practice, however, they were facing difficulty realizing this objective”, said 41 – year – old Sachdev.

CoinTribe is a Gurgaon – based fintech startup. It gives loans to SMEs whose turnover is in the range of Rs. 1 crore to Rs. 50 crores. It gives small to medium ticket loans in the range of Rs. 1 lakh to Rs. 30 lakhs to SMEs. This startup has completely digitized the loan borrowing and loan re – payment process by means of its website and mobile app. Even the documents required to apply for loans are scanned and sent via the website or mobile app! The startup uses BigData analytics to estimate the creditworthiness of its borrowers.

“Once the borrowers apply through our platform, they are digitally risk assessed and rated on a scale of 1-5 from lowest to highest risk customers and their loan eligibility is recommended based on their ability to repay”, said Sachdev.

This risk assessment is shared with the startup’s partner lenders through a lender matching system which helps identify the most suitable lender for a borrower, based on a lender’s risk appetite and policy requirement.

“If a borrower is approved, we also facilitate the collection of relevant documentation and support the lenders in following up with customers for timely payments”, said Sachdev.

The startup offers two types of loans: Open market loans and supply chain loans. Open market loans can be availed through the startup’s mobile app or website. For supply chain loans, the startup partners with corporates to provide credit to their supply chain partners.

“Here the corporates supply chain partners are assessed for risk based on the transaction data provided by the corporate”, said Sachdev.

Convincing capital providers that their startup could accept liability in the case of a loan default and give away fresh loans was a huge challenge to the startup’s founders.

“The first meeting we went into, we were told that we had lost our minds”, said Sachdev!

The founders had to meet more than a hundred people from a bank across many departments like business, product, credit, risk, underwriting, legal, etcetera to convince them that investing in CoinTribe was worthwhile. “Once we were able to prove the efficacy of our risk assessment model, things started to turn around for us”, said Sachdev. Some of the prominent banks that CoinTribe has tied-up with include Axis Bank, RBL Bank, Capital First Bank, Fullerton India Bank and Kotak Bank. The founders of CoinTribe had invested a sum of Rs. 1 crore to found the startup. Shortly, they were funded by angel investors like Puneet Dalmia and Bharat Dalmiya to the scale of Rs. 19 crores. So far, CoinTribe has provided loans to about 2000 SMEs. The startup currently gives loans to SMEs amounting to Rs. 30 crores to Rs. 40 crores a month. During March, this year (2017), the startup generated a revenue of Rs. 3 crores. The startup is looking to expand its presence beyond the Delhi – NCR region and set up operations in Mumbai by the end of 2018 said Sachdev. Read more on Startup News

Fintech startup CoinTribe helps SMEs get loans quickly
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