Mumbai: Peer-to-peer lending startup LenDenClub said on Friday it raised $1 million in a pre-series A round led by early stage investor Artha Venture Fund.

Other angel investors and family offices such as UAE-based Transworld Group also participated in the round.

LenDenClub offers small ticket loans directly to lenders from over 150 cities. It aims to reduce the time taken to underwrite a loan. Loans that meet the minimum preset qualification criteria get approved within 5 minutes and those that are rejected are underwritten by a back-end team with a 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.

“The current funding round gives us the ability to double our reach and continue our quest in finding creditworthy borrowers that are not being serviced by the current financial institutions," said Bhavin Patel, co-founder & CEO, LenDenClub said.

“We also aim to double the number of lenders on the platform to reach Rs. 500 crores disbursal in the next 18 months," he added.

Early-stage venture capital fund Artha Venture Fund aims to tap into India’s consumption growth story by betting on startups in consumer services and consumption enablers from its debut fund, which has raised 100 crore so far, and made a second close of the fund in June, Mint reported.

In July 2018, Artha made the first close of its fund at 40 crore. A close of private equity or venture capital fund is a milestone that allows it to start investing the capital raised, while continuing to raise funds from more investors. It expects to make the final close of 200 crore by April 2020.

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