India: Accel India Invests $1 Million in Blockchain-Based Loan Facilitating Startup
According to a report by VCCircle published on January 31, 2019, venture capital firm Accel India has invested $1 million in startup StreamSource, a blockchain-based marketplace for unsecured personal loans.
Blockchain Finds Use Case in Anonymous Loan Market
An increasing number of blockchain-based companies are trying to find their footing in India. Being one of the fastest growing economies, the Indian market is an alluring one for startups looking to breakeven in a short period of time.
StreamSource was founded in May 2018 by co-founders Mayank Tewari and Prerit Srivastava. The DLT-powered platform enables lenders to work in unison without divulging any confidential information. The veil of anonymity also covers borrowers as they seek funds from lenders without having to provide any critical information about themselves.
Mayank Tewari, co-founder of Streamsource shared his thoughts on the firm’s process model. He said:
“Both parties are completely private and do not share confidential information with each other. Both sides are protecting their data, while still transacting with each other.”
StreamSource is headquartered in New York and has a branch in India in the city of Gurugram. The firm is said to be in talks with mid-size lenders in the U.S. However, it did not disclose the names of these lenders.
With regard to the utilization of funds, the company stated that it will use the capital to further develop its offering. The firm added that it also has plans to expand its sales team in the U.S. and hire local talent in developed markets like the UK and Australia.
Prayank Swaroop, a principal at Accel Partners, said that although the VC firm has been eyeing the Indian blockchain sector “for the longest time,” it wasn’t sold on any of the ideas presented to it. StreamSource’s business model gave the firm the confidence required to finally invest in them.
Blockchain Investment Continues to Rise in India
India’s government push towards digitization of the country reflects in the booming technology industry in the country. The government and private organizations have shown immense faith in blockchain technology in recent times.
As previously written by BTCManager on January 24, 2019, RBI’s R&D division, named The Institute for Development and Research in Banking Technology (IDRBT), unveiled a blueprint for the deployment of DLT in India’s long-untouched banking sector.
On a more recent note, a consortium comprised of 11 Indian banks and financial institutions launched a blockchain-based funding network to help small and middle-level enterprises secure funds in a transparent manner.