LenDenClub aims to grow with a 5-fold increase in disbursements over the next 18 months
Investors include Kunal Shah, Alok Bansal and Hardik Pandya
As of August 2019, he had raised $ 1.5 million as part of his pre-Series A round
Peer-to-peer (P2P) lending startup LenDenClub raised $ 10 million in a Series A round from a consortium of investors including Tuscan Ventures, Kunal Shah (Founder, CRED) and Alok Bansal ( co-founder, Policybazaar).
Valued at over $ 51 million in the most recent funding round, LenDenClub is now aiming to grow significantly, envisioning 5-fold growth in disbursements over the next 18 months, according to a company statement.
Other investors in the consortium include Ohm Stock Brokers, Artha Venture Fund, Ramakant Sharma (co-founder, Livspace), Hardik Pandya (Indian Cricketer), Krishna Bhupal (co-founder of Promaxo and board member of GVK Power & Infra).
During the current financial year, the company has disbursed loans worth over 1200 Cr INR. It plans to use the new capital in an aggressive expansion, growing its loan portfolio to $ 1 billion and increasing the user base to $ 10 million from the current 2.5 million by 2022-2023. .
The Mumbai-based startup plans to offer a host of financial services by shifting its business to a digital banking model.
The company aims to invest heavily in innovating and upgrading its proprietary technology stack platform to help and sustain customer growth, while supporting all kinds of banking operations conducted on its platform.
“In addition, the company aims to strengthen its leadership strength and is considering strategic appointments in the C suite in pursuit of its expansion goals, in addition to increasing the size of the operational team by the end of the year. next fiscal year, “he said.
He is targeting new hires for the technology, product, marketing and customer service roles that will assist him in his growth plans of increasing his presence across the country.
The platform currently has over 2.5 million borrowers and 1 million investors and has recorded loan disbursements worth over Rs 2,000 Cr, including disbursements worth 1,200 Cr INR were carried out during the first six months of the financial year 22.
Founded in 2016 by Bhavin Patel and Dipesh Karki, LenDenClub leverages technology to put borrowers and investors on the same platform, offering instant loans to borrowers and offering new age investment options to investors across the country.
Commenting on the fundraiser, Bhavin Patel, Co-Founder and CEO of LenDenClub, said, “The goal is to accelerate growth while maintaining profitability of operations.
In August 2019, LenDenClub had raised $ 1.5 million as part of its pre-series A cycle co-led by the micro-venture capital fund Artha Venture Fund-I, Transworld Group and Shuchi Kothari of the DSP group.
It competes with i2iFunding, CapZest, Monexo, LoanBaba and IndiaMoneyMart in the P2P lending space.
Noida-based firm i2iFunding raised an undisclosed amount from existing investor SucSEED Venture Partners in June 2019, bringing its total funding to $ 1.1 million. Mumbai-based Capzest has total funding of $ 510,000. Monexo also raised total funding of $ 500,000.
The fintech space has seen gigantic progress in recent years, especially with the mass adoption of digital amid the pandemic.
The growth of the fintech ecosystem can also be measured by the fact that India witnessed its largest initial public offering (IPO) from Paytm, a pioneer of the fintech space in the country. Last month, the NCR-based digital payments giant became public with its offer INR 18,000 Cr.
Other fintech players, including the insurtech unicorn Political bazaar and Fino payment bank recently listed on the stock exchange.