Peer-to-peer lending startup Faircest has raised an undisclosed amount of funding from Gunosy Capital and Das Capital with participation from existing investors M&S Partners and Starharbor Asia. The startup plans to use the freshly raised capital to strengthen its technology and expand its products offerings.
Founded by Rajat Gandhi and Vinay Mathews in 2014, the startup connects lenders with borrowers without any mediators and intermediaries. Faircent has received a non-banking financial companies license with P2P certification from the RBI in May 2018.
Rajat Gandhi, founder, and CEO of Faircent, reportedly said, “Currently, loan originations on the platform are at an annualized rate of ₹600 Cr. With support from our marquee investors, we will focus on taking financial inclusion to every part of India while delivering on the expectations of all our stakeholders.”
The startup has raised more than ₹37.8 crores in funding since its inception. Faircent is backed by Manipal Global Education’s chairman TV Mohandas Pai as well as institutional investors like 3one4 Capital, Aarin Capital, and Brand Capital.
The startup offers automated tools like “Auto Invest” feature which matches a lender’s investment criteria with the borrower’s requirements and automatically sends a proposal to the borrower. Borrowers are pre-selected on criteria like loan tenure, required amount and risk profile. Faircent has disbursed loans worth ₹200 crores in the last financial year.
The P2P lending market in India will touch ₹28,000 crores by 2023. According to a report by BCG, the digital lending market in India will touch $1 trillion in the next five years. There are several peer-to-peer lending startups tapping into the huge opportunity in the segment. Some of them are i2iFunding, Monexo, LoanBaba, CapZest, LenDenClub, and IndiaMoneyMart.