BENGALURU: Peer-to-peer lending platform Finzy raised $ 2 million in a funding round, the company said.
Finzy is currently seeking to raise $ 10 million as part of its Series A round. The company has not disclosed the names of the investors.
The funds will be used to bolster its technology and improve product offerings for its lenders and borrowers, Finzy added.
The four-year-old startup offers unsecured personal loans starting at 7.99% interest per annum.
“We have lifted this bridge around our existing investors. We’re in the documentation stage with a Silicon Valley-based tech fund and expect our Series A to close in a few months. To avoid excessive dilution at an early stage, we would limit our Series A raise to $ 10 million although we have demand for a much higher number of investments, ”said Amit More, CEO and Founder of Finzy.
Finzy claims to have over 1 lakh of clients on their platform.
P2P lending is being revamped with larger fintechs including BharatPe and Cred entering the space, allowing customers to earn and borrow at competitive market rates.
In August, merchant fintech BharatPe launched a P2P offering called 12% Club to allow consumer lenders to earn 12% interest on their investments. Product members can also borrow at 12% interest as BharatPe has launched a separate app for P2P offering.
The same month, Cred also launched its P2P Cred Mint offering. It allows its user base of 7.5 million users with a credit score of 750 or more to lend at 9% interest and borrow at 12-15%.
The idea was to create an anti-inflation product for customers with excess savings and counter the annual (borrowing) interest rate of revolving credit cards, Cred founder Kunal Shah said. to Mint during an interaction.
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