BankBazaar raises Rs 375 cr in funding round led by Amazon

This is Amazon's second investment in e-commerce space in India

Online financial marketplace BankBazaar.com has raised Rs 375 crore ($60 million) in a Series-C funding round, led by Amazon and participated in by Fidelity Growth Partners and Mousse Partners, as did existing investors Sequoia Capital and Walden International.

This is said to be the biggest funding round in the online financial products market space. In April, online policy aggregator PolicyBazaar had raised $40 mn in a Series-D round from a clutch of investors led by PremjiInvest and participated in by Tiger Global and Ribbit Capital, among others.

The investment in BankBazaar.com is Amazon’s second investment in the e-commerce space in India. Earlier, the global retail giant had invested in QwikCilver Solutions, a Bangalore-based online gift company when the latter raised its last round of funding to the tune of Rs 60 crore ($10 million). Helion Venture Partners and Accel Partners, the existing investors in the company also participated in the round.

According to Adil Shetty, founder & CEO of BankBazaar, the company intends to use the fund to expand its category of products and position the company as the one stop shop for all financial decisions.

The funds will be deployed towards technology integration, hiring and strengthening partner relationships and to creating a truly phenomenal end-to-end customer experience in order to grow in the online financial services category as a market leader.

"Amazon is an innovative company that perceives consumer needs and innovates on their behalf. We share the same belief and we are committed to enabling an easy, convenient and trustworthy purchase experience for consumers focusing on financial products be it loans, credit cards or any other personal finance products. We are encouraged by Amazon’s faith in us,” said Shetty, a former Deloitte Touche Tomahatsu executive who co-founded the company in 2008 along with two others.

“As the digital economy in India develops, Amazon will be an important investor in the robust and rapid growth of BankBazaar,” he added.

After strengthening its presence in the online loan and credit card market, BankBazaar is now planning to launch other personal finance products to help consumers clinch the best deals. Presently, it has signed on more than 23 bank partners to give range of financial services to the consumer. This apart, Shetty said the company is investing heavily on its mobile App which is available on both the Android & iOS platforms.

"The company has made great strides in the last two years and become the premier consumer destination for financial products. With this fund raise, BankBazaar plans to innovate even more to provide the best and fastest experience for consumers", said Gautam Mago, Managing Director, Sequoia Capital.

BankBazaar has so far raised close to $80 million in three rounds including $6 million in series A and $13 million in series B rounds.