LenDenClub raises $10 mn in funding round, plans $1 bn loan book by FY23

LenDenClub has raised $10 million in funding that it will use for expanding its business, loan book and users, said the digital peer-to-peer (P2P) lending company.

The funding valued LenDenClub at more than $51 million. The capital came in a Series A round co-led by a consortium of investors that included Tuscan Ventures, Ohm Stock Brokers, Artha Venture Fund and Kunal Shah, the founder of fintech company CRED. Other investors included Alok Bansal (co-founder of Policybazaar.com), Ramakant Sharma (co-founder, Livspace), cricketer Hardik Pandya, Krishna Bhupal (co-founder, Promaxo and Board member of GVK Power & Infra). 

The company, which earlier this year said it was the only profitable P2P lending platform, plans a five-fold growth in loan disbursals in 18 months. It has disbursed more than Rs 1,200 crore worth of loans this fiscal. The fresh capital will be used for expansion, taking its loan book growth to $1 billion and upscaling the user-base to 10 million from the current 2.5 million by FY 2022-23. 

“We have been constantly inventing products that yield greater returns for our investors and democratising credit while offering market competitive rates for our borrowers,” said Bhavin Patel, co-founder and CEO, LenDenClub. “Futuristic, customer centric-products and seamless digital experience offered by our platform backed by a focused market expansion approach, is what has aided the exponential growth of LenDenClub.”

The company said it would upgrade its proprietary tech-stack platform for customer growth and support all kinds of banking operations. It is eyeing fresh recruits for the role of tech, product, marketing, and customer service who will aid its growth plans of upscaling its presence across the country.

LenDenClub has more than 2.5 million borrowers and 1 million investors and it has registered loan disbursements worth more than Rs. 2000 crore. Out of this disbursals worth Rs 1200 crore were achieved in the first 6 months of FY21-22 alone.

“We are thrilled to see such a rich trove of investors backing a startup that we have seen grow from 1 to 2 loans a month, to doing 35,000+ loans,” said Anirudh A Damani, Managing Partner, Artha Venture Fund. “We are eager to see where this round of investment takes LenDenClub and the path that it charts for itself.”

Founded in 2016 by Bhavin Patel and Dipesh Karki, LenDenClub uses technology to bring borrowers and investors on its platform. It provides instant loans to borrowers and offers investment options across the country. It processes over 2.5 lakh loan applications every month.

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