HAPPY has raised INR 7.5 Cr in debt from DCR Workforce
HAPPY has launched a lockdown fund for MSMEs
Meanwhile, Scentials is raising INR 3 Cr in debt from angel investors
In fresh rounds, Mumbai-based lending startup HAPPY and beauty and wellness company Scentials have raised funding as per official filings. While HAPPY, which used to be known as ArthImpact, raised INR 7.5 Cr from DCR Workforce Inc, Scentials bagged INR 3 Cr in debt funding from angel investors.
According to the ministry of corporate affairs (MCA) filings, US-based cloud-based software provider DCR Workforce invested in Finserve Private Limited, the parent company of HAPPY. As part of the deal, HAPPY has issued 750 debentures to DCR Workforce. The price per debenture stood at INR 1 Lakh per debenture.
Founded in 2016 by Manish Khera, Gautam Ivatury and Shweta Aprameya, HAPPY offers working capital loans to micro-enterprises. HAPPY offers 180 days loans, small short-period loans and invoice discounting services.
HAPPY claims that no or minimal documentation is required for obtaining a loan as it provides instant approval. The startup charges 2.5% monthly interest along with a one-time processing fee of 2%.
Prior to this funding, HAPPY raised $20 Mn in equity and debt funding round from India and US-based strategic investors while DMI Finance helped in improving the financing lines.
In the wake of the ongoing crisis, HAPPY has launched a lockdown loan to help businesses mitigate the hit on the revenues. The current debt funding might help increase the loan book.
According to a joint study by Omidyar Network and Boston Consulting Group (BCG), digital lending to micro, small and medium enterprises (MSME) in India can grow up to $100 Bn by 2023, a 15x increase in annual disbursements. In the MSME lending segment, HAPPY competes against the likes of Aye Finance, Lendingkart, ZipLoan, Indifi, among others.
Scentials Raising INR 3 Cr In Debt
Meanwhile, Scentials is raising INR 2 Cr from Ambiga Subramanian and INR 1 Cr from Goutham Ekollu, according to the MCA filings.
As part of the deal, Scentials is issuing 200K and 100K debentures to Subramanian and Ekollu respectively at a price of INR 100 per debenture. Prior to this funding, Scentials had bagged $3.6 Mn in a funding round led by Unilever’s VC fund Unilever Ventures.
Founded in 2018 by Jinesh Mehta and former tennis player Mahesh Bhupathi, Scentials offers skincare products and fragrances curated by celebrities and fashionistas. The company had launched Virat Kohli’s’ One8 brand in the fragrance category while a line of skincare “Arias” with Lara Dutta was also launched last year.
According to Red-Seer Consulting, the Indian beauty industry is expected to cross $3.5 Bn by 2022. Besides Scentials, other startups which are quite popular in this segment include Nykaa, Purplle, among others.