Lendbox, a New Delhi-based peer-to-peer lending startup has now secured Rs. 6 crores in the funding round of Pre Series A. The funding round was led by IvyCap Ventures.
The funds raised are going to be utilized for reinforcing company’s risk assessment procedures along with improving its customer support services. The company is also planning to strengthen its front – and back-end technology platforms with the newly acquired funds.
Founded in the year 2015, by Bhuvan Rustagi, Jatin Malwal, and Ekmeet Singh, Lendbox offers a digital platform that connects borrowers directly with lenders by eliminating mediators like commercial banks, depository institutions, etc. It also offers the lowest interest rates for borrowers.
The elimination of mediators like commercial banks, depository institutions, etc., in turn, increases the investor’s yield. In order to assess the creditworthiness of borrowers, Lendbox uses 100 data points, including professional and behavioral analysis, CIBIL scores, and financial data like salary and credit card limit.
The startup is expecting to grow fivefold in the coming year in terms of both revenues and transactions value and volumes. The startup is currently providing its services across 100 cities with more than 110,000 active users.
Talking about the investment, Vikram Gupta, founder of IvyCap Ventures said, “The RBI guidelines have been an important step in the right direction, even if still small, for the P2P lending space in India, giving us the confidence to invest in LendBox,”
He further added, “The potential to capture the mid- and the low-segment market is large, and if a firm can do that well, the value one is sitting on is phenomenal.”
Picture Credits: Lendbox