Bengaluru-based micro-enterprise focused P2P lending platform LoanMeet has finally shut down its operations as it failed to raise follow on funds. Entrackr reported that the firm has been winding up operations for the past two months. LoanMeet laid about 15 people in the past few months.
Founded by Ritesh Singh and Sunil Kumar in 2015, LoanMeet financed working capital requirements of SMEs and startups as well as provided cash credit line and channel financing in the range of INR 5,000 to 5 lakh for short terms ranging from 15 days to 9 months. It claimed to build a first-loss default guarantee (FLDG) for three NBFCs partners.
LoanMeet raised an undisclosed round from individual angel investors including Madhusudan Ekarmbaram, CEO of KrazyBee as well as Chinese entrepreneurs Cao Yibin and Huang Wei. LoanMeet competed with heavily-backed companies including Capital Float, Loan Frame, Happy Loa.
The founders have already started working on a new project. The fintech sector is the fastest growing sector in terms of venture capital funding. However, this has led to an overcrowded market.
LoanMeet is not the only startup that shut down. Recently, Indian mobile maker Karbonn Mobile also filed for closure. There are several startups that shut down, you can read this list of startups that shut down in 2018. We have also compiled a list of startups that closed their operations in 2016.