India-based P2P lending platform Finzy has netted $1.3m in the first round of its pre-Series A funding round.
The company is looking to close a second round of funding to the series within the next 60 days, from a group of pre-identified investors.
Launched in 2017, Finzy is a digital platform to connect borrowers and investors to get personalised rates of interest. The application helps lenders to make lower risk investments by using a credit assessment algorithm and granular diversification to balance the portfolio.
Borrowers are screened through their previous repayments, income levels, relevant database scans and credit bureau reports, and then given a credit rating. The lenders can then support their loan application, alongside a portfolio of others, earning the investor a monthly return credited back to their account.
This equity injection will be used to accelerate growth by investing in its technology and hiring more staff to its team. A â€˜significant amount of fundingâ€™ will be used for geographical expansion across Tier 1 cities.
Finzy co-founder and CTO Abhinandan Sangam said, â€œWe are investing in newer technologies to scale the business and enhance customer experience. Our customers love us for the transparency and simplicity. We offer our borrowers complete flexibility of prepayments without any additional charges. We provide consistent 16% plus return to our lenders from their investment spread across granular loans.â€
There has been a recent string of investments in to the India FinTech space over recent weeks, with billing and subscription management platform Chargebee picked up an $18m Series C. Another recent deal in the country was the $2.5m Series of real-time analytics and customer engagement platform ZineOne.
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