LenDen Club, peer-to-peer (P2P) lending platform, today announced that it has raised $10 million in a Series A round co-led from a consortium of investors inclusive of - Tuscan Ventures, Ohm Stock Brokers, Artha Venture Fund, Kunal Shah (Founder, CRED), Alok Bansal (Co-founder, Policybazaar), Ramakant Sharma (Co-founder, Livspace), Hardik Pandya (Indian Cricketer), Krishna Bhupal (Co-founder of Promaxo and Board member of GVK Power & Infra).
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.
What will the funds be used for?
With the current round of funding, LenDen Club valued more than $51 million, now aims to scale up substantially, eyeing a 5X growth in disbursals in the next 18 months.
The company has already disbursed more than 1200 crore worth of loans in this fiscal alone.
The fresh capital will be used in aggressive 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.
LenDen Club aims to offer financial services
LenDen Club is eyeing to offer a host of financial services as the next frontier transitioning to a digital banking model.
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. 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.
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.
Founded in 2016 by Bhavin Patel and Dipesh Karki, LenDen Club leverages technology to bring borrowers and investors on the same platform – providing hassle-free instant loans to borrowers and offering new-age investment options to investors across the country.
Bhavin Patel, Co-founder & CEO, LenDen Club, said, “We are privileged and delighted to bring on-board immensely diverse investors in this round and use their expertise to fuel further growth at LenDen Club. The aim is to accelerate growth while maintaining profitability on operations.”
Anirudh A Damani, Managing Partner, Artha Venture Fund, said, “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. We are eager to see where this round of investment takes LenDen Club and the path that it charts for itself.”
LenDenClub had raised $1.5 million as part of its Pre-series A round co-led by Micro VC fund Artha Venture Fund - I, Transworld Group and Ms Shuchi Kothari of the DSP Group in August 2019.
