Bengaluru-based P2P lending platform Finzy has raised $1 Mn in continuation of its Pre-Series A round of funding led by senior professionals from BFSI (banking, financial service, and insurance) and successful entrepreneurs.
Prior to this, Finzy had raised $1.3 Mn in the first tranche in March 2018, closing Pre-Series A round at$2.3 Mn with the latest funding. The startup plans to use the raised funds for geographical expansion, technology enhancement, and stronger distribution networks.
Founded in 2017 by Abhinandan Sangam, Amit More, and Vishwas Dixit, Finzy connects verified borrowers looking for affordable personal loans with investors looking to invest in the new risk-optimized asset through a proprietary credit assessment algorithm and granular diversification developed by the startup.
The startup claims that its monthly loan disbursements have grown more than 2x in the last six months, and further expects to grow by an additional 3x by March 2019.
Amit More, founder, and CEO of Finzy said, “This round will help us scale our business closer towards break even. Currently, Finzy is a team of 60 passionate colleagues working towards a single-minded objective of providing a hassle-free experience to our borrowers and create a new sustainable asset class for our lenders. We are achieving this without compromising on our standards and we do not have even a single NPA to date.”
Finzy has recently obtained NBFC-P2P certification from the Reserve Bank of India (RBI). The RBI certification will help Finzy gain more traction in financial markets and strengthen confidence among its investor community.
Recent Development In India’s Online Lending Market
Gurugram-based online lending platform Aye Finance has recently raised $10 Mn from debt financing round. The funding round was led by global impact investment managers Triple Jump BV and MicroVest Funds. The deal was executed by Northern Arc Capital (formerly IFMR Capital).
Another online lending startup StashFin partnered with a non-banking finance company DMI Finance to raise $4.3 Mn for onward lending through its platform.
As per data available, fintech startups grew by 31% Year-on-Year (YoY) to almost to 360 in 2017, with almost $200 Mn funding received in H1 of this year, recording a growth of 135% since H1–2016.