18 October 2016, India :
Monexo Innovations, the latest entrant in the Indian peer-to-peer lending space, aims to raise about $5-10 million to expand its business in India.
Peer to peer lending platforms refer to a business model that brings together lenders and borrowers – individual and institutional -with funds changing hands after proper due diligence related to Know Your Customer (KYC) and Anti Money Laundering (AML) procedures. Incidentally, factoring in the growing popularity of the segment, the Reserve Bank of India (RBI) released a discussion paper in April on the proposed guidelines for the participants.
“Currently, we have not raised any funds externally but we will need to raise in the range of $5-10 million to scale our operations,” Monexo Founder and Chief Executive Officer Mukesh Bubna told The Hindu, adding that he is talking to some global venture capital players.
Further, Bubna said “we are eyeing major share in the peer-to-peer lending business having potential of growing to Rs 10,000 crore in the next five years” and the company is targeting Rs 300 crore business in the first year of operations.
The company charges a fee of 2.5 per cent of the loan amount from the borrower, it takes a similar cut from the lender as well but only when the loan is repaid. It has tied up with the third-party entities to follow up on the recovery if the borrower defaults on the payments. Source- The Hindu