Uthaan Technologies, which operates fintech startup Microfinance.ai, has raised $200,000 (Rs 1.5 crore) in a Pre-Seed round of funding led by We Founder Circle (WFC).

FAAD Network, Gujarat University Start-up and Entrepreneurship Council (GUSEC), Ankit Prasad (Founder and CEO Bobble AI), and Saurabh Aggarwal (Co-founder Fitso), also participated in the funding round.

As per the startup, the freshly raised funds will be used for backend technology development to further strengthen the platform and also to hire talent. 

Microfinance.ai | Simplifying Microcredit Business

Founded in 2020 by Swati Sinha and Kapil Patil, Microfinance.ai offers an AI-powered mobile platform featuring simple to use customer onboarding, screening and product management tools in a secure and safe environment.

The AI-powered startup offers a mobile platform named LYT, which makes it easy for local-language preferred and less educated users to avail financial services digitally. 

Speaking on the development, Kapil Patil, Co-founder at Microfinance.AI, said,

“Microfinance.AI primarily focuses on providing a digital platform for availing micro financial services and empowering local-language preferred users with customised knowledge delivered in bit-size content.”

Microfinance.ai addresses language gaps, uses a voice-assisted user interface and speech-to-text for app inputs. Additionally, the startup offers its micro-lending partners a dedicated web dashboard to see and manage the borrower profile, append alternate data for underwriting in addition to credit score integration, digital communication with borrowers and AI-powered early warning on possible loan default. 

The fintech space is witnessing an increased interest from the investors who are heavily investing in the segment. Recently, Bengaluru-based fintech startup Slice entered the unicorn club and raised $220 million in its Series B funding round led by Tiger Global and Insight Partners.

Additionally, early-stage fund 8i Ventures announced that it had raised $50 million for its Fund II that aims to invest in startups operating in the fintech space.

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