LenDenClub on Tuesday said it has raised USD 10 million (about Rs 75.3 crore) in a funding round from a clutch of investors, including Tuscan Ventures, Ohm Stock Brokers, Artha Venture Fund and others, valuing the peer-to-peer (P2P) lending platform at more than USD 51 million.
The series A round also saw participation from Kunal Shah (Cred founder), Alok Bansal (Policybazaar co-founder), Ramakant Sharma (Livspace co-founder), Hardik Pandya (cricketer) and Krishna Bhupal (Promaxo co-founder), a statement said. The company earlier this year had announced that it was the only player in the P2P lending space in the country to have turned profitable. With the current round of funding, LenDenClub now aims to scale up substantially, eyeing a 5X growth in disbursals in the next 18 months, the statement said.
The company has already disbursed more than Rs 1,200 crore worth of loans in this fiscal alone. “The fresh capital will be used in aggressive expansion, taking its loan book growth to USD 1 billion and upscaling the userbase to 10 million from the current 2.5 million by FY 2022-23. The company aims to invest heavily in innovating and upgrading its proprietary tech-stack platform to aid and upkeep the growth in its customer base whilst supporting all kinds of banking operations conducted on its platform,” the statement noted.
Powered by a digital-first approach, LenDenClub aims to offer a host of financial services as the next frontier transitioning to a digital banking model, it added. Additionally, the company aims to enhance its leadership strength and is eyeing strategic C-suite appointments in pursuit of its expansion goals, besides increasing the operational team size by the end of the next fiscal.
Founded in 2016 by Bhavin Patel and Dipesh Karki, LenDenClub currently has over 2.5 million borrowers and 1 million investors and has registered loan disbursements worth more than Rs 2,000 crore. It currently has two high-growth loan products – InstaMoney for salaried customers and small business loans for merchants and shopkeepers.