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True Balance raises $28M in new financing

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True Balance a South Korean startup which runs an eponymous financial services app aimed at tens of millions of users in small cities and towns in India disclosed i hs raised $28 million in a newfinancing round and expects to turna rpofit  next year.

SoftBank Ventures Asia, Naver, BonAngels, Daesung Private Equity, and Shinhan Capital financed the five-year-old startup’s Series D financing round. The startup, which has headquarters in Seoul and Gurgaon, has raised about $90 million to date.

True Balance began its life as an app to help users easily find their mobile balance, or top up pre-pay mobile credit. But in its five-year journey, the startup has added a range of financial services including online lending and ability to pay utility bills. Online lending is its core business today.

Its customers don’t have a credit score, which makes it complicated for them to get a loan from financial institutions such as banks. Lee explained that True Balance, which formerly operated as Balancehero India, looks at alternative data to determine a user’s credit worthiness.

In the last three months, True Balance has started to grow again, Lee said, claiming a 300% surge. The startup continues to run a range of other services including the ability to book train tickets and e-commerce and is also working on insurance.

“We will continue focusing on non-online payment users, non-credit score users, people who deserve our help, but need a way to get to it,” he said.

The fresh capital will be deployed to make the startup reach the break-even point and then profitability, he said. True Balance is also working to reach more underbanked users in India.

 

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