LenDenClub, which is a P2P lending platform, has now secured Pre-Series A funding round of $1 million led by the Artha Venture Fund. The round also saw participation from the UAE based Transworld Group as well as some of the marquee angel investors.
The company revealed that the raised funding would be going to be used to expand its senior management team, to develop innovative product and expanding its geographical reach of around 12 states.
LenDenClub which offers small-ticket loans directly to the lenders and uses its proprietary tech stack to reduce the time taken to underwrite a loan. Loans that meet the minimum preset qualification criteria get approved within the five minutes, and those that are rejected are underwritten by a back-end team with a two-hour turnaround on the lending decision, the company claims.
“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. We also aim to double the number of lenders on the platform to reach Rs 500 crore disbursal in the next 18 months.”Bhavin Patel, Co-Founder, and CEO, LenDenClub
Some other features of the platform include the startup InstaMoney, which serves as a gap that banks and NBFC cannot fulfil – offering the small ticket loans disbursed into the bank account of salaried individuals within the 24 hours.