Xtracap funding: raises 1 million dollars in Angel round
The Gurgaon based fintech, Xtracap raises 1million dollars in angel round from US and UK based investors. The company is planning to utilize this fund for expanding products and distribution capability, and also wants to reinforce IT infrastructure. Additional digital solutions, including, payments, order management, logistics, insurance, and financial services, along with an accounting platform, are also in the company’s pipeline to launch by March 2021.
Founder & CEO of Xtracap, Mohammed Riazsays “We aim to provide a digital ecosystem in about 1,500-plus towns and cities with high consumer demand. With an increase in digital adoption, this time period will shrink in the future due to the unprecedented Covid-19 situation,”
The company was founded in 2017 by Mohammed Riaz and Nishant Singh with an aim to provide access to short term liquidity to connect retailers in small towns by connecting them with banks and NBFCs. The company claims to have 30,000 registration in the last 3 years. It works through its app platform Bridge2Capital offering online payments, supplier selection, and consumer loans to customers of shopkeepers. The tenure of the assistance is short term from 30 to 90 days. The product is developed on the principle of reverse factor with payment being made to GST registered suppliers.
Founder & CEO of StartupLanes, Shishir Gupta says, sometimes it’s very difficult for small businesses especially from small towns and villages to get access to loans and other financial services. There are many reasons behind this like lack of awareness, less knowledge, lack of infrastructure, etc. If we see the Business plan of Xtrcap, it’s very feasible and allows almost all retailers, businessmen from a small area to reach the financial institutions and utilize maximum services for their growth. Congratulations to the team.
India’s rural market is growing at double the rate of urban markets. The retail revolution is acting as a catalyst. There is huge potential in these areas. We need to provide more infrastructure, services, and the latest technology support to the businesses to grow and develop.