The round also saw participation from Rajan Navani, Harvard Angels – Abhishek Gupta and Vinay Gupta; Praful Thachery, Ashish Taneja (MD at growX ventures), Mahesh Parasuraman (co-founder & partner at Amicus Capital Partners), Suresh Bala (SVP at GIC, Govt of Singapore investment fund), among others.
According to a study by World Bank’s investment arm IFC, in conjunction with SIDBI and RBI data, the market size for unsecured short-term loans is $120 Bn. Leveraging the opportunity, Loanzen is helping businesses, that have been in operation for less than three years, or do not have collateral, meet short term cash-flow gaps, by offering them short tenure loans for up to 120 days.
The newly raised capital will be used to build engineering team, which works with varied data sources, and for building the data science team, which models the data to predict borrowers’ probability of default.
Talking about the investment, Neha Singh, of Tracxn, said, “Loanzen is addressing an important gap, in the lending ecosystem, as it empowers the small and medium businesses to access hassle-free short term credit.”