Lead Angels | Finverv I

Dear Angels,

We are excited to open Finverv for commitments from our Investors. The company was presented in our recent Investor meeting held in March, and in the Investor call held on 17th July.

Finverv is a unique answer to all those B2B and specially B2B product manufacturers (including SMEs) who want to launch Lending/EMI/Pay-later options for their buyers, to boost their revenue in online sales.

Building a lending software on a sales portal can take significant investment and time and yet the product manufacturer can still remain an island in itself, losing market opportunities.

Finverv brings unique value to its network of ever-increasing Lending Partners already onboarded onto their solution along with easy implementation to suit various process needs. Finverv has helped increase the revenue of the majority of its customers successfully.

Finverv is supported by Antler and other renowned Investors in its 1st Round. In this round, the lead investor is July Ventures, and Lead Angel investors will have the validation of this larger investor. The company has already started making revenues which is three tiered: Set up fee, SaaS fee and a share in AuM managed. The founding team possesses deep experience in lending with renowned brands and in building a marketable tech stack for eCom usage. The valuation is attractive in our assessment.

Based on our above observations, we are offering Finverv to our investors. Following are the details of the company for your reference:

Key highlights of Finverv

Finverv is a unique credit infrastructure platform to enable easy access of credit to millions of businesses through a network led approach.

• Full-stack credit infrastructure: 10 times faster, more cost-effective, and enhances risk management compared to existing options.
• Instant Implementation: Users can quickly launch lending products using our APIs or configurable consumer journeys.
• Customizable: The platform supports product-driven API flows and user journeys that can be tailored to specific requirements.
• On-Point Information: Real-time dashboards provide comprehensive insights into the lending portfolio. Detailed reports and analytics offer intelligence on various aspects of the lending operations, enabling informed decision-making.
• Lender Network Access: Clients can access credit from a large network of lenders available through your platform. Alternatively, they can onboard their own lending partners, providing flexibility in sourcing credit.

Problem

Any platform or company dedicated to building credit solutions for their customers often struggle to effectively enable and scale these solutions, leading to unmet credit demands among end consumers. This challenge is particularly pronounced for those catering to MSMEs, where enabling credit is essential for expanding wallet share with customers, partners, and vendors. We identify three key areas where platforms face difficulties in enabling credit:

• Identifying right risk-matched partners:  There is a significant challenge in identifying and managing relationships with the right risk-matched lender partners.
• Manual & Incompatible infra: Operational inefficiencies due to incompatible infra between the platform’s systems and lender systems, leading to operational and financial leakages, hindering smooth credit operations.
• Blanket & Linear Risk Management: Many platforms use simplistic or uniform risk management approaches that do not sufficiently account for the diverse risk profiles among MSMEs. Developing robust risk assessment models tailored to MSMEs poses a challenge.

Solution    

Finverv offers a white-labeled lending infrastructure designed to assist B2B demand platforms in launching and expanding their credit products effectively. Their platform provides an end-to-end digital infrastructure that is configurable and specifically focuses on meeting the credit needs of businesses ranging from small to large enterprises.

Key features of Finverv’s offering include:

• Integrated Network of Lenders: They provide an integrated network of lenders, allowing B2B demand platforms to seamlessly connect with multiple lenders through a single interface.
• Lender Integration as a Service: Finverv facilitates the onboarding and integration of existing or future lender partners onto their platform. This service ensures that lenders can easily participate in credit programs offered by demand platforms without needing separate integrations for each platform.
• Efficiency in Acquiring and Servicing Demand: Through their infrastructure, Finverv enables lenders to efficiently acquire and service borrowers within various demand ecosystems.  Through a single integration process, lenders gain access to multiple B2B demand platforms that align with their portfolio strategies, credit policies, and operational methods, streamlining the process of credit decision-making and management.
• Comprehensive Solution: By offering a complete solution to demand platforms, Finverv enhances the scalability and operational efficiency of credit products. This includes configurable digital infrastructure that supports the unique needs of different businesses seeking credit solutions.

In summary, Finverv’s platform acts as a comprehensive facilitator between B2B demand platforms and lenders, optimizing the process of launching, scaling, and managing credit products. Their focus on integration, scalability, and alignment with lender strategies positions them as a valuable partner in the ecosystem of business credit solutions.

Market Opportunity

Total AUM opportunity – $440 Billion

Total Addressable Market – $5 Billion

About the Founders

Siddharth Bhardwaj – Co-Founder (Business & Operations)

• Held leadership roles at LoanSimple and Bajaj Finserv
• Consultant at Mobikwik, Shiprocket, CredGenics, and SaraLoan
• Co-Founded ‘PayWayz’
• Managed lending partnerships in product & strategy roles and identified infrastructural gaps
• IMT, Ghaziabad, post graduate
• MIT, Manipal graduate

Sangeet Verma – Co-Founder (Product & Technology)

• Built ‘ServX’ as CTO, scaled for 2.5 years, acquired by CarDekho
• MIT, Manipal graduate

Details of the Investment round

 Finverv is raising INR 9 Cr at a 20% discount to the next round with a Valuation cap of INR 32 Cr if the next round has a valuation of below 90 Cr. In case, the valuation of the next round is above INR 90 Cr then our CCPS will convert at a valuation of INR 45 Cr.  They already have INR 4 Cr of commitments from July Ventures and INR 2 Cr from existing investors. The period for this raise is 24 months from the signing of the agreement. We have secured an allocation of INR 2 Cr in this round for Lead Angels Fund. A thorough external due diligence is already underway by the lead investors and we are expecting to close the round in a month.

The investment in Finverv is open through our SEBI-registered AIF Category 1 VCF Angel Fund, Lead Angels Fund. In case commitments exceed the allocated amount, allotment will be on a “First Come, First Serve” basis