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Online financial services startup BankBazaar secures $60 mn funding led by Amazon

BankBazaar,
a startup that allows users to compare financial products online, has raised a
$60 million in Series C round led by Amazon, with participation from Fidelity
Growth Partners, Mousse Partners, and returning investors Sequoia Capital and
Walden International.

BankBazaar,
a startup that allows users to compare financial products online, has raised a
$60 million in Series C round led by Amazon, with participation from Fidelity
Growth Partners, Mousse Partners, and returning investors Sequoia Capital and
Walden International.

According to a
TechCrunch report, BankBazaar will reportedly use its financing on hiring,
marketing, and investing in its mobile apps, which are used by 40% of its
customers. It also plans to launch new financial products and services.

The platform
aggregates information about online loans, credit cards, and fixed deposits
from 23 financial institutions, which users can research and then apply for
using its site or Android and iOS apps. The company claims to get four million
unique visitors each month.

According to a report,
for Amazon, its investment represents a chance to take a larger stake in the
personal finance market. Owing to the low credit card penetration in India, online
payments remain to be the main hindrance for many consumers who want to shop
online.

Both the
companies told TechCrunch that there are “synergies” between them that will be
“leveraged for consumer benefit in the coming years.”

In a prepared
statement, Amazon India vice president and country manager Amit Agarwal said
“BankBazaar is a unique and compelling service that aligns with Amazon’s
mission in India—to transform the way India buys and how India sells.”

According to
BankBazaar’s research, about 74% of consumers with Internet access in India’s
ten largest cities for information about loans online at the end of 2014,
compared to 46% just a year ago.

The vast
majority of people, however, still rely on brick-and-mortar offices. The
company says that less than one percent of overall sales of financial products
in India are transacted online, but believes more people will turn to platforms
like it as Internet penetration increases because they can do their
own research before deciding on a loan, credit card, or investment vehicle
instead of listening to a sales pitch.

The company
claims that that online applications for personal, home, and auto loans are growing
by 90%, compared to just 15% growth offline.

 

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