Bangalore-based peer to peer (P2P) lending platform Finzy on Monday announced raising funds worth USD 2.3 million in Pre-Series A round, including USD 1.3 million raised in the first tranche in March 2018.
This funding round has been funded by senior professionals from BFSI industry and successful entrepreneurs. The startup plans to use the freshly raised capital for geographical expansion, technology investment and stronger distribution networks.
Founded in 2016, by Abhinandan Sangam, Amit More and Vishwas Dixit, Finzy is a premier P2P lending solution in India that connect borrowers with investors and make the entire process simple and easy so that one can get a loan in as little as 48 hours.
“This round will help us scale our business closer towards break even. Currently, Finzy is a team of 60 passionate colleagues working towards a single minded objective of providing a hassle free experience to our borrowers and create a new sustainable asset class for our lenders,” said founder and CEO, Finzy, Amit More.
“We are achieving this without compromising on our standards and we do not have even a single NPA till date,” added More.
Finzy’s monthly loan disbursements have grown more than 2x in the last 6 months and is expected to grow by an additional 3x from here on by March 2019.
“RBI regulations have ensured that only competent platforms continue to offer Peer to Peer Lending services. Lenders clearly understand the power of monthly returns at 15.5% per annum. The vacuum that Finzy’s new investment opportunity fills in between fixed deposits and equity is also a powerful value proposition to lenders on the platform. Lenders are loving the experience and returns offered on Finzy and more than 40% of these lenders are returning back to make repeat investments,” said co-founder and CMO, Finzy, Vishwas Dixit.
Recent Fundings in Digital P2P Lending Startups
Last week, an another Bangalore-based digital consumer lending startup HappyEMI raised $1 million from AJ Ventures, JAN and Anand Sankeshwar, Managing Director of VRL Logistics.
Last month, Mumbai-based online peer-to-peer (P2P) lending startup RupeeCircle raised Rs 4 crore in seed funding from Mahindra Finance, which is a non-banking financial company (NBFC) under Mahindra Group.
In March, US-based digital payment company Wibmo Inc acquired Gurgaon-based mobile peer-to-peer (P2P) payment solution startup Mypoolin in a cash and stock deal valued above $1 million.
Prior to this, Faircent, touted as India’s largest P2P lending company, raised Rs. 25 crore in a high-profile funding round led by Incofin Investment Management with participation from its existing investors.
Via – Times of India