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Business News/ Brand Stories / Crossing 6,500 Cr, Lendbox Targets $1 Billion+ of Loan Disbursement in FY 2024
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Crossing ₹6,500 Cr, Lendbox Targets $1 Billion+ of Loan Disbursement in FY 2024

This accomplishment marks a significant milestone in Lendbox's growth trajectory

LendboxPremium
Lendbox

In a transformative shift for India's financial landscape, the peer-to-peer (P2P) lending industry has rapidly evolved from a recently regulated space to becoming a driving force in the country's digital lending space. Just a few years after the introduction of RBI’s regulatory measures, P2P lending has seamlessly woven itself into the fabric of India's lending ecosystem. Lendbox, which received its NBFC-P2P license in 2019, has reported an exponential year-on-year growth of 300% in its disbursement value since 2022, reaching over 6,500 Crores in cumulative loan disbursement as of December 2023.

Founded in 2015 by Ekmmeet Singh, Bhuvan Rustagi, and Jatin Malwal, this Delhi-based P2P lending platform is now managing a portfolio of more than 25 million active loans. This accomplishment marks a significant milestone in Lendbox's growth trajectory, as the platform has recently expanded its workforce by 3x to boost its operational capabilities. In December 2023 alone, Lendbox facilitated 700 Crores worth of loans across all lending products. 

Understanding India's growing demand for credit, Lendbox has transitioned from simple unsecured personal loans to crafting a suite of credit options that cater to different levels of borrowers' needs. The platform's loan portfolio showcases adaptability, featuring a diverse range of options, from the recently established 'Buy Now Pay Later' (BNPL) segment to shopaholic’s favorite Zero Cost EMI, while still processing traditional personal loans. This approach effectively addresses the changing demands of the market. According to the platform, the introduction of different loan categories was met with a positive response from investors as well since it enabled a higher level of diversification. These tech-enabled modern credit options have helped fintech platforms like Lendbox reach a wider user base that avails short-term credit on a daily basis, playing a key role in its loan book growth.

This success has also been attributed to its robust lending mechanism, fine-tuned over the last eight-year period. Central to this performance is the adaptation of advanced AI and machine learning technologies, which play a crucial role in screening and processing thousands of loan applications on a daily basis. This technological prowess allows for meticulous credit checks across various parameters, enabling Lendbox to cater to a diverse range of borrowers belonging to every age group and income bracket without compromising its portfolio quality. The average credit score of an active borrower as per the platform is more than 720.

Another key factor impacting growth at Lendbox has been its well-timed strategic partnerships. Through collaborations with some of India’s leading fintech players such as Khatabook, Cashe, and Snapmint, Lendbox timely entered the app-enabled credit era and expanded its reach across different demographics. These partnerships not only helped Lendbox create a well-diversified loan portfolio for its investors but also established a pan-India presence, serving users across 75+ cities in India.

In addition to the substantial numbers on the borrower's side, Lendbox significantly expanded its investor base as well, boasting an active investor count of more than 4.5 Lakh users and achieving a total AUM exceeding 2600 Crores in December 2023.

Looking forward, Lendbox aims to disburse over $1 billion in loans by the end of 2024. This objective is underpinned by the platform's robust lending algorithm, strategic partnerships, and a diverse portfolio of credit products tailored to address the unique needs of a broad demographic.

Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same. 

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Published: 06 Feb 2024, 05:15 PM IST
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