UK-based fintech company ClearScore has said it will shut its India business effective April 13, within a year of starting operations, due to the financial impact of the Covid-19 pandemic. This could be the first instance of a fintech company shutting down due to the coronavirus.
ClearScore India was launched in September 2019 and offered a suite of services that allowed users to check their credit score for free, compare pre-approved credit offers and obtain loans and credit cards online instantly.
Speaking to TOI, Clear-Score country manager (India) Hrushikesh Mehta said the uncertainty due to the pandemic forced them to take the decision to shut operations. According to Mehta, the business made money whenever a customer availed a loan using its platform. The lockdown meant lender partners couldn’t staff their call centres and new loans dried up.
The Indian arm, run by a team of six, serviced 16 lakh users. “Three weeks ago, we were very optimistic. And then the UK started locking down, India as well, and lenders started pulling out. In a week, we were barely making any money,” Mehta said.