Indian P2P platform i-lend partners with Singapore-based Lenddo to fulfil its expansionary plans.
Hyderabad based peer-to-peer lending marketplace i-lend and Lenddo – a Sigapore-based firm specialised in using non-traditional data for credit scoring and on-line verification - announced today they are entering into a strategic partnership.
According to the online lender, the agreement represents a stepping-stone into the Singapore market. Indeed, the platform aims to scale up its presence across the city state to facilitate unsecured personal loans between individuals to individuals and institutions to individuals.
Founded in 2013, i-lend is reportedly India’s first P2P lending marketplace. The platform allows borrowers to build their own credit history and create a listing for their requirements. The platform features various tools which assess not only the repayment capability of the borrowers but also their ability to service the interest and repay the principal. Lenders can browse borrowers’ profiles and lend either in part or in full, with a minimum investment amount of RS 10,000.
Vaddadi Shankar, Founder of i-Lend, commented the partnership:
"Tie-up with Lenddo will help us reach out to borrowers who are otherwise not included in the financial system due to lack of credit history,"
Founded in 2011, Lenddo is a technology company which focuses on using non-traditional data to compute people’s credit scores. Abhinav Haldia, country director for the Indian market at Lenddo, added:
"India is a very important market for us and usage of non-traditional data to score and ensure financial inclusion of larger population is critical to India's growth,"
The Indian alternative finance space is just at the start of its journey. Only last week, AltFi reported the launch of a new platform by the name of RupaiyaExchange, founded in late 2015 by Rohan Hazrati, former CFO of Amtek International - one of the largest integrated component manufacturers in India - and former consultant at Ernst&Young.
More established Indian platforms include the likes of Faircent.com - which was profiled by AltFi last January, Kiva.org, Rangde.org, Milaap.org and Lendbox.
The goal of expanding its operations in Southeast Asia could be a clever strategic move. Southeast Asian small and medium enterprises contribute between 30% and 60% of national gross domestic product (GDP) and employ between 60% and 90% of the total workforce in Indonesia, Malaysia, Philippines, Singapore and Thailand – with many businesses reporting limited access to financing. Less than 60% of SMEs in those five countries have access to bank loans and approximately 50% of the SMEs is underserved by financial institutions.
AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.