Indian firm A&A Dukaan Financial Services raises $6 million in funding from Walden International

Indian firm A&A Dukaan Financial Services Pvt Ltd has raised $6 million in its second round of funding from Venture Capital firm Walden International. A&A Dukaan runs a loan advisory and processing portal BankBazaar.com. The funds raised are to be used to improve product availability, as A&A Dukaan plans tie-ups with more banks, as well as add insurance policies and credit cards.

A&A Dukaan as well expects to use the funds to hire more financial services and technology experts. In its first raising, the firm raised $1.2 million from a strategic investor, AVT Infotech Pvt Ltd. BankBazaar.com enables consumers compare the interest rates on various loans offered by different banks in India.

Rajesh Subramaniam, Managing Director of Walden India said that currently, the process of applying for loans in India, from finding the best deal, applying and getting it processed is cumbersome and time consuming. BankBazaar.com's solution not only helps the consumers in getting the best deals on the loans online, but also provides end-to-end fulfillment by enabling online processing of loans, he said.

Subramaniam further said that no one in India is offering end-to-end fulfillment online, making BankBazaar.com's proposition unique. He said the portal also helps banks in reducing the turn-around-time, enriching customer experience and reduces costs, adding that the investment is a win-win situation for both banks and consumers. Subramaniam will join the Board of Directors of BankBazaar post the acquisition.

BankBazaar which has tie-ups with commercial banks like ICICI Bank, Axis Bank and HDFC Bank offers consumers a choice of rates on consumer loans, credit cards and insurance products based on mix of automation and large volume play. Other than direct-to-consumer services, the start-up also powers the MSN Money portal and offers lowest loan rates on other media sites. At present the company has a team of 40 employees most of whom are engineers.

Commenting on the investment, CEO BankBazaar.com, Adhil Shetty said Walden's track record in helping scale companies globally and their extensive network and experience in the financial services industry in India will benefit the firm significantly. The funding will help BankBazaar in enhancing its reach to consumers and offerings across loan and insurance products, thus enriching customer experience, said Shetty.

Walden is a leading international venture capital firm that provides investors access to cross-border, IT opportunities with the advantage of an unrivaled Pan Asia network. The firm's funds total over US$1.9 billion in committed capital.

18th March 2011