BackP2P lending platform LenDenClub gets seed funding
The company has an average borrowing average of `95,000 and charges 1-3% commission by connecting individual borrowers to lenders
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Bengaluru: Peer-to-peer lending platform LenDenClub, run by Innofin Solutions Pvt. Ltd, Monday said it has raised angel investment through Venture Catalysts, a seed investment and innovation platform. Investors like Anirudh Damani, Daud Ali, Narendra Karnavat, Vikas Kapoor, Vikram Lakhotia, Krishna Jhunjhunwaala and Jayesh Shah participated in the funding, it said.
LenDenClub said in a statement that it will use the funds to create a strong technology platform and increase its reach to borrowers and lenders. The company did not disclose the amount raised. Founded in 2014, the platform currently has 725 lenders and 1,120 borrowers.
“We wanted to bring traditional lending on digital platform. Securing seed funding at such a nascent stage gives us the boost we have been looking for. This will allow us to further improve the platform and reach out to more users," said Bhavin Patel, co-founder and chief executive, LenDenClub, in a statement.
The peer-to-peer lending space is pegged to become a $4-5 billion market within the next three to five years, Venture Catalysts said. “There is a lot of scope for peer to peer lending platform in India. This web based platform for lending business offers good opportunity for growth. Since there are a lot of regulatory & RBI hurdles in this industry, it is considered to be high risk-return investment. To eliminate the risk associated in this segment, there has to be proper solutions in place to keep the regulatory hurdles out," said Narendra Karnavat, angel investor at Venture Catalysts.
The platform connects salaried borrowers to individual lenders which uses a combination of traditional and non-traditional data points to validate credit-worthiness of borrowers. The company has an average borrowing average of ₹ 95,000 and charges 1-3% commission by connecting individual borrowers to lenders.
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