Mumbai-based LenDen Club, an online peer-to-peer lending marketplace of personal loans, has raised undisclosed seed round of funding through Venture Catalyst, Indian seed investment and innovation platform. The round saw participation from Anirudh Damani, Daud Ali, Narendra Karnavat, Vikas Kapoor, Vikram Lakhotia, Krishna Jhunjhunwaala and Jayesh Shah.
Venture Catalyst has also invested in vPhrase Analytics and SIFTR Labs this year.
The raised funding will be used by the startup towards strengthening the technology and increase the reach of users. Founded in 2014 by Bhavin Patel and Dipesh Karki, LenDen Club’s platform ensures elimination of high cost intermediary institutions to bring monetary benefits to lenders and borrowers. The startup earn by charging transparent fees to borrowers and/or lenders.
Also, the company encourage borrowers to share as many details as possible so that lenders would be comfortable lending them. It simplifies the process of lending and borrowing to reduce all the hassles involved in offline lending process.
The platform evaluates each borrower on multiple parameters (screening of personal, financial and professional details etc) and claims that verified creditworthy borrowers are listed on its platform. Currently, its platform has 725 lenders and 1,120 borrowers and claims to have borrowing average of Rs 95,000. Around 1-3% commission is charged for any transaction and the lender can choose interest rate from 12.5% to 30%.