Fintech Unicorn CRED To Invest $10 Mn In P2P Lending Platform LiquiLoans

Fintech unicorn Cred is looking at investing $10 Mn in LiquiLoans for acquiring a minority stake in the peer-to-peer (P2P) lending platform. 

LiquiLoans will be valued at $200 Mn in the round, CRED said in a statement. 

The investment will deepen the engagement between LiquiLoans and CRED, the statement said, adding that the partnership with the lending platform has enabled CRED members to participate in P2P lending opportunities through the CRED mint product.

With this investment, LiquiLoans will form a strategic alliance with CRED and also fortify its tech capabilities, it added. 

“LiquiLoans has innovated in creating trust-worthy financing products. It is a leader in peer-to-peer lending with a strong management team. Its work has helped expand access to credit, and we look forward to partnering with them in their next phase of growth and innovation,” said Kunal Shah, founder of CRED.

Founded by Gautam Adukia and Achal Mittal, LiquiLoans is a fintech lending startup that offers P2P credit solutions. It deploys technology to connect borrowers with lenders, thereby removing margins levied by banks, NBFCs and other financial institutions, according to its website.

“Our goal has been to build a trusted and credible P2P lending platform. We have partnered and will continue to partner strategically with entities that share similar ethos. Our long-term relationship with CRED and this investment will accelerate our goal of creating efficiencies for seamless borrowing and investments,” said Achal Mittal, cofounder of LiquiLoans.

In 2019, LiquiLoans reportedly secured INR 12 Cr in its pre-series A funding round from Matrix Partners and angel investors Kunal Shah, Abhishek Dalmia from Renaissance Group and Jitendra Panjabi. 

CRED, set up in 2018 by Shah, is a reward-based platform for credit card users. The fintech platform offers reward points to credit card users for paying their bills on time. It further helps credit card users manage multiple cards and updates them about their credit score. It started offering P2P credit solutions in 2019. 

In June, CRED secured $140 Mn in its Series F round led by Singapore-based sovereign wealth fund GIC. Existing investors including Sofina, Tiger Global, FalconEdge, and Dragoneer, among others also participated in the round. It was valued at $6.4 Bn in the round.

CRED’s cap table includes GIC, Sofina, Tiger Global, FalconEdge, and Dragoneer, among others. It competes with the likes of Slice and OneCard in the Indian market. 

According to an Inc42 report, the country’s fintech industry is likely to grow into a $1.3 Tn market by 2025. The industry will expand at a CAGR of 31% during 2021 and 2025.