Mumbai-based P2P lending startup LiquiLoans has raised ₹12 crores ($1.68 million) in a Pre-Series A round from Matrix Partners. Investors like Kunal Shah, founder of Freecharge, Abhishek Dalmia, chairman of Renaissance Group and Jitendra Panjabi also participated in the funding round.
The startup plans to use the freshly raised capital to improve its branding and build credibility among the customers as a new peer to peer lending player. Launched in 2018 by Gautam Adkia and Achal Mittal, the startup offers instant loans to customers and focuses on prime customers without going into the risky category.
LiquiLoans focuses on providing consistent returns to its lenders and never promises a huge rate of interest. This is due to the fact that the startup doesn’t provide loans to risky borrowers of the underserved and unserved category. The startup provides personal loans, consumer loans and deposit financing.
LiquiLoans claims to disburse the amount within 24 hours of approval. With a team of 25 members, LiquiLoans is hoping for removal of regulatory limitations such as limitation of ₹10 Lakh on the total amount that can be lent and borrowed so that it can expand its business rapidly.
Indian P2P lending industry is witnessing a sudden boom and has seen the emergence of a lot of P2P lending startups in India. The sector is expected to touch the $5 billion mark by 2023. Players like LendBox, LenDenClub, Monexo, LoanBaba and CapZest are already disrupting the market.