Online lending startup Avail Finance and Ola announced a strategic partnership on Friday to create financial solutions for Ola’s 1.5 million driver-partners.
The ridesharing service provider plans to invest an undisclosed amount in Take advantage of financing in its Series A, led by Matrix Partners. So far, the startup has raised $ 9 million in the circle.
The partnership with Ola will help Avail Finance create personalized financial solutions, including micro-savings and microinsurance products for Ola’s partner drivers.
Speaking on the partnership, Ankush Aggarwal, Founder of Avail Finance, mentionned,
“We are delighted with this partnership and the opportunity to serve Ola’s large driver-partner base. We already have nearly a million registered users through our various offers and have processed requests of over $ 50 million.
Founded in 2017 by Ankush Aggarwal and Tushar Mehndiratta, the startup provides financial solutions, including unsecured online loans to blue collar workers, which are mainly made up of drivers, security guards, beauticians, construction workers, manufacturing, home and maintenance.
Avail Finance offers services such as personal loans, payday advances and savings available on its mobile application.
In an official statement, Avail Finance said that due to frequent fluctuations in workers’ income, financial services are not readily available. This manual labor force represents nearly 78 percent of the country’s workforce, and more than two million such jobs will be created in the coming year, according to a statement.
Vikram Vaidyanathan, Managing Director of Matrix India spoke about the work of Avail Finance and said:
“Avail’s vision is to provide a complete financial solution for low-income users, starting with the gig economy. They quickly implemented this vision to build an early leadership position by working closely with many like-minded partners.
The startup is supported by key entrepreneurs from the Indian startup ecosystem, including Binny Bansal, co-founder of Flipkart; Kunal Shah, founder of Cred; and Manish Patel, founder and CEO of Mswipe.