Credit is the lifeline of any economy, and a service that enables people to borrow money at competitive interest rates with minimal paperwork offers a compelling business model.
This idea inspired three entrepreneurs with strong technology and finance expertise to launch a startup that allows individuals to secure loans against their mutual funds (MF) through the digital platform.
Quicklend, a fintech startup based in Bengaluru, was founded by Raghuram Tirkutam, Arun Jadhav, and Abhishek Uppala in December 2023. The company aims to offer a seamless platform where users can secure a loan against their mutual funds in just 30 minutes.
The founders bring a wealth of experience from both established technology companies as well as startups. These include Google, Amazon, Cred, Freecharge, Redbus, Stripe, and Grab to name a few.
This experience led the three of them to believe that they can offer a unique digital credit platform for retail consumers.
The opportunity is certainly large considering the size of the mutual fund industry in India. According to Association of Mutual Funds in India (AMFI), the assets under management of the mutual fund industry was Rs 66.93 lakh crore at the end of December, 2024. Also, the investment made by retail investors through systematic investment plan (SIP) reached Rs 26,459 crore in December 2024.
However, the current external environment for building such a business remains challenging with the Reserve Bank of India (RBI) imposing strict regulations on credit disbursement through fintech channels, many startups have been forced to rework their business models.
But Quicklend believes there is still substantial demand for credit in the country.
“We believe this (credit) is a latent market because the financial institutions have the money to lend but the discovery mechanism is missing,” Tirkutam tells YourStory.
How it works?
The discovery mechanism is that of identifying the credit worthy customers. Quicklend’s current business model involves identifying customers who need a loan, and connecting them with financial institutions that provide the funding. In doing so, it generates demand for financial institutions.
Tirkutam says, “We told the lenders you get your margins, we get our margins, and customers get a good price.”
Currently, Quicklend facilitates the entire loan process for customers using its MF holdings. It has partnered with mutual fund distributors and other fintech firms to identify potential customers. It then connects them to financial institutions that provide the loans.
Quicklend claims that the entire loan process can be completed in just 30 minutes. The platform provides loans ranging from Rs 25,000 to Rs 3 lakh, and allows customers to borrow up to 50% of their MF holdings.
At present, it is enabling customers to avail loans upto Rs 1 crore, and the platform is even attracting companies seeking credit solutions.
Quicklend earns a commission from the financial institutions for every successful loan disbursal. It does not charge anything for the customers availing this facility.
Tirkutam believes that in a credit starved country like India, this should be available with meaningful parameters. Also, the business model of Quicklend comes under the ambit of secured lending.
“In secured lending, one can lend at a lower interest rate where everyone benefits,” he says.
The regulator directive was largely against unsecured lending where the interest rates are higher resulting in better profit margins for all those involved in this business.
Today, Quicklend offers two kinds of services to its clients. First, it acts as the lending service provider where it handles the entire process—from sourcing potential customers to the closure of the loan. Secondly, it provides a technology platform for financial institutions to manage and enable this process.
Quicklend has tied up with financial institutions like Bajaj Finserv and Piramal Finance to provide loans. Currently, the platform processes around 40-50 loans every month.
Funding and way forward
The fintech startup raised a pre-seed funding of Rs 7 crore from venture capital firms such as Upsparks, Eximius Ventures, and Inuka Capital, as well as angel investors.
Eximius Ventures Founder and Managing Partner Pearl Agarwal said, “As vigilance around unsecured loans rises, secured loans are set to grow significantly. With mutual funds gaining traction in Tier 2 and 3 cities, this creates a lucrative opportunity. Quicklend is at the forefront, digitizing the loan journey with mutual funds and plans to expand into other secured assets.”
Quicklend’s competitive edge lies in its focus on secured lending, which keeps the risks low. Secondly, it does not lend from its books, and acts as a middleware connecting retail consumers with financial institutions. Lastly, given the inflows into the mutual fund business, the demand for such loans is only expected to rise.
As part of its future plans, Quicklend is exploring the possibility of providing loans against stocks or properties but these are still early days. It is also actively looking at incorporating more “intelligence” into its technology platform where it would mean that it can guide the retail consumer better on which financial institution would be ideal based on their requirement.
“We are building what is good for everyone in the industry, be it the retail consumer or financial partners,” says Tirkutam.
