India-based P2P lending platform Finzy has raised an additional $1m to its pre-Series A round, bringing its total to $2.3m.
The company held the $1.3m first close of the pre-Series A earlier in the year. The round was supported by senior professionals from BFSI industry and prominent entrepreneurs.
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.
Over the past six months, the company loan disbursements have grown two-times, and is predicted to rise another three-times from now until March 2019.
With this line of funding, the company is hoping to expand geographically, bolster its distribution networks and develop its technology. Finzy is looking to raise a Series A round early next year.
Last year, the Reserve Bank of India launched new P2P lending regulations (NBFC – P2P), which Finzy is now compliant and certified with.
Finzy co-founder and CMO Vishwas Dixit said, ?RBI regulations have ensured that only competent platforms continue to offer Peer to Peer Lending services. Lenders clearly understand the power of monthly returns at 15.5% per annum.
?The vacuum that Finzy new investment opportunity fills in between fixed deposits and equity is also a powerful value proposition to lenders on the platform. Lenders are loving the experience and returns offered on Finzy and more than 40% of these lenders are returning back to make repeat investments.p>
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