Peer-to-peer lending startup LenDenClub has raised $1 million (Rs 7.2 crore) in a pre-series A funding round, led by existing investor Artha Venture Fund.
Several family offices like the UAE-based Transworld Group participated in the round with angel investors like Health and Glow director Shuchi Kothari, Livspace cofounder Ramakant Sharma, Narendra Karnavat and others.
The latest round comes after a Rs. 4.5 crore seed round the Mumbai-based startup had received in 2018, after getting the P2P NBFC lending license from the Reserve Bank of India.
As per the company, the latest funding will be utilized to expand its senior management team, developing innovative lending products, and also to increase its reach to 12 states.
The startup founded by Bhavin Patel and Dipesh Karki in 2016, is processing more than 150 loans per day and caters to customers across six states. As per the latest numbers shared by the company, there were 23,000 registered lenders with 4,000 monthly active ones. There are around 2 lakh registered borrowers on the platform. It offers small ticket loans directly to vendors and leverages proprietary technology to reduce time taken to underwrite loans. Loans that meet minimum preset qualification criteria are approved within 5 minutes, and those rejected are underwritten by a back-end team with 2-hour turnaround on the lending decision.
The approved borrower profiles go live on a special lender app where over 10,000 active lenders choose whom they want to lend to.
We are doing around 5,000 loans per month with an average lending amount per lender per borrower at Rs 1,000,”
said Patel, CEO of LendenClub.
The startup claims to offer salaried individuals loans within 24 hours, catering to the needs of the section not served by the non-banking sector and currently operates in 6 states, with more than half a million individuals registered on the platform, and has disbursed more than 50,000 P2P loans, with a total loan book standing at Rs.60 crores.
The company aims to create a collections team dedicated for the new states he wants to expand to with a sub 4% non-performing asset base on its current loan book, and then open the lending tap. His team of 90 people largely work from Mumbai and cater to customers from all the states the company operates in.
Authored by Soham Angal , Content Developer(StartUp Monk)