P2P lending marketplace Lendbox has raised an undisclosed amount of funding in pre-Series A round from IvyCap Ventures. The investment is somewhere in the range of INR 5 to INR 6 crores, according to Entrackr sources. Post the deal, Akanksha Sharma, IvyCap’s Vice President will join the board of LendBox.
The Delhi-based bootstrapped startup will use the fresh capital to ramp up its technology and efficiency. Furthermore, the firm plans to encourage its marketing efforts and bring more lenders and borrowers on the platform.
Founded by Ekmeet Singh, Jatin Malwal and Bhuvan Rustagi, the startup connects the underserved market of borrowers and lenders. It cut downs the interest rates for borrowers and increases investor’s profit by eliminating mediators.
Lendbox has an automated cash management system which enables collecting the EMIs and disbursal of the loans. The startup assesses credit score by analyzing various data points like salary expenditure and borrowers social, professional and behavioural analysis.
The startup has more than 14,000 registered lenders and more than 1,39,000 borrowers on its platforms with a loan book of more than INR 35 crores. It was launched in 2015 and competes with other startups in the space like LendenClub, i2iFunding and Faircent. You can read this list of 14 peer to peer lending startups to know about all the competitors of Lendbox
According to TransUnion CIBIL’s 2018 report, there are over 150 million consumers who are eligible for credit but are unserved by banks. While digital lending space is growing fast in India, the lack of regulations and high default rates have been a roadblock for these p2p lenders.