True Balance, a payment and financial services platform backed by SoftBank, has undergone a transformative journey in India since its inception in 2014. Initially established as a balance checking platform for mobile prepaid users, the company has evolved to offer a comprehensive range of financial services, including lending.

Charlie Lee, Founder & CEO of True Balance, highlighted the company’s strategic focus on the lending market in India in an interview with Business Insider. Lee emphasized the pivotal role of balance checking as the entry point for balance recharge, which remains one of the most significant transaction volumes in payment services. True Balance commenced its operations in India in 2016, expanding its offerings to encompass financial services like commerce, insurance, and lending.

“Lending is at the core of all financial services and is the money-making business, and that’s why we are concentrating on it,” Lee remarked.

Business Growth and Strategy True Balance introduced its lending feature in November 2019, witnessing a robust 100% month-on-month growth until March 2020. However, the company faced challenges due to the COVID-19 pandemic and the Reserve Bank of India’s moratorium. Lee mentioned that the business began to recover only from August onwards, now experiencing a remarkable 200-300% month-on-month growth rate.

The company’s focus lies in microlending to cater to what Lee refers to as the “one billion middle-class users.” True Balance operates on the revolving loan concept, enabling users to repay a portion of the loan and carry forward the remainder. Lee explained that they target users with a monthly income ranging from ₹20,000 to ₹50,000, who may not possess a credit score. True Balance utilizes proprietary credit scoring algorithms based on user-provided data to determine the credit amount users can access.

Upcoming Funding Round True Balance last concluded its Series C funding round in October 2019, raising $23 million from Korean investors. While Lee did not disclose specific details, he indicated that the company has secured commitments from Japanese, Korean, and Indian investors for its upcoming Series D funding round, which is expected to conclude soon.

Lee, drawing on his prior experience leading country operations for Real Networks, a streaming media delivery firm, expressed optimism about India’s burgeoning market. He underscored the immense market opportunity in India, particularly for app-based financial services, citing the country’s rapid growth trajectory.