Bangalore-based consumer lending platform, LoanCircle, has raised an undisclosed amount in angel funding from Toppr.com co-founder Zishaan Hayath, Trifecta Capital MD Rahul Khanna, Quintype CEO Amit Rathore, Amit Arora and Appiterate co-founders Anuj Bhargava and Mayank Kumar.
The funds will enable the company to expand its team in the areas of risk, technology and operations.
Founded in August, 2015 by Tanuj Mendiratta, LoanCircle, is a consumer lending platform that finds credible borrowers and connects them to lenders. It applies data and technology to better underwrite borrowers and get them access to loans at cheaper rates. The appraisal process involves looking at credit, transactions, employment, social status and more 1000 other data points for each and every loan applicant. Once the processing is complete, it gives out a detailed report along with the ‘L-Score’. It also recommends the credit decision to its lending partners.
The platform has approved more than 100 loans as of now and is rapidly gaining traction every day.
LoanCircle is now focusing on the unsecured consumer lending space in India. The bank based personal loan market (not including the NBFCs) in India is worth $37 Bn, according to RBI as of July, 2015. However, the market still remains underserved and has a large section of borrowers without access to credit through the traditional route.
The company has tied up with some online merchants and plans to expand its merchant network in the coming months. Plans to do loans worth $3 Mn (INR 20 crore) by March, 2016 are on the table and the startup is in the process of tying up with banks and NBFCs on the lending side.