London-based Welendus, a consumer peer-to-peer (P2P) lending platform, is all set to enter the competitive India market of P2P lending.
Welendus has just raised an undisclosed amount in funding from Unicorn Ascension Fund, a joint cross-border fund by Mumbai-based Unicorn India Ventures and Ascension Ventures, a London-based early-stage venture fund.
The funds raised will be used for future expansion into India.
According to Bhaskar Majumdar, Managing Partner, Unicorn Ascension Fund, the alternative lending sector has significant relevance in India as more than half the population is unbanked and banks are not able to cater to the debt needs of all small businesses and individuals. The company has also thought through their go-to-market strategy for the Indian market.
Founded in 2015, by Nadeem Siam and Tuomas Hietanen, Welendus offers ethical short-term P2P loans to those in need of emergency cash. Touted as first P2P “short-term” lending platform the startup offers loan at a much cheaper rate with no hidden costs or charges.
Welendus is authorized and regulated by the FCA (Financial Conduct Authority), a financial regulatory body in the UK which operates independently of the UK Government. It currently regulates 58000 financial services firms and financial markets in the UK.
Recently awarded with the Most Innovative Brand by the World Banking Awards, Welendus uses big data to make affordable short-term loans a reality. A short-term credit is form of line of credit granted to a business or an individual with a term of one year or less, and thus get instant approval and disbursal.
The startup was also a part of Level39, Europe’s largest accelerator for tech startups innovating in finance.
In India, peer-to-peer (P2P) lending has emerged as key fintech hotspot off late. P2P lending is being recognized as a credible financing option which is revolutionizing the way lending and borrowing is done currently.
After being regulated by India’s central bank, the Reserve Bank of India, and receiving the status of NBFC (non-banking finance companies), the P2P lending sector has witnessed a high paced growth trajectory in the area of alternate financing in 2018 with key market players as — Faircent, RupeeCircle, Monexo, LendenClub, i2ifunding, among others
Unlike other existing P2P players in India, Welendus has USP of instand loan approval and same day funding.
[Top Featured Image – Level39.co]
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