Optimo Capital Secures Funding for Growth in Loan Against Property
Optimo Capital, a fintech NBFC that provides digital loans against property (LAP), was founded by Prashant Pitti, a co-founder of EaseMyTrip. The company has successfully raised Rs 150 crore ($17.5 million) in its Series A funding round, which was led by Pitti, along with contributions from existing investors such as Blume Ventures and Omnivore. Additionally, Optimo has secured Rs 110 crore in debt financing from IDFC and Axis Bank, with plans to establish further partnerships with PSU banks and other NBFCs.
Funding Purpose and Expansion Plans
Optimo intends to utilise these funds to enhance its technology systems, develop AI infrastructure, initiate co-lending strategies, and expand its reach into tier-3 markets. The firm provides secured loans to small business owners who can leverage their residential or commercial properties as collateral.
Target Audience and Unique Offerings
The company primarily targets MSME borrowers who may not have an extensive credit history but possess valuable property. Optimo positions its loan offerings as a higher-ticket and lower-rate alternative to unsecured business or personal loans.
Innovative Use of Technology
The platform employs 77 lakh digital land records along with AI-driven methodologies to ensure thorough property valuation and title assessments. Optimo claims to deliver in-principle loan approvals within hours and complete loan disbursements in less than a week, considerably quicker than the usual four-to-six-week duration typical of traditional lenders.
Impressive Growth Metrics
In a span of 18 months, Optimo has reportedly created a loan book worth Rs 350 crore and operates branches in 56 cities across Karnataka, Tamil Nadu, Telangana, Andhra Pradesh, and Madhya Pradesh, employing a workforce of 480 individuals. The company asserts that it has remained profitable since the third month of its operations and has maintained this profitability for over 15 consecutive months.
Recent Changes in Leadership
In August, Pitti announced his resignation from the position of Managing Director at EaseMyTrip but will continue to serve as a promoter and long-term shareholder of the online travel company.