LoanZen raises an undisclosed amount in seed funding and plans expansion across India.
Bangalore-based peer-to-peer lending marketplace LoanZen announced today the closure of a seed investment round, led by angel investors through Tracxn Syndicate, an angel network launched by Tracxn. The company hasn’t yet disclosed the amount of money raised.
LoanZen was founded in September 2015 by IIM Bangalore alumni Madhu Sudan and Venkatesh Sankararaman, and Ritesh Kadmawala, a computer science graduate from University of Southern California. The company helps businesses – which are less than three years old and/or do not have collateral – to meet short term cash-flow gaps, by providing them with unsecured working capital loans against their pending invoices.
Madhu Sudhan, co-founder, LoanZen, commented:
“Tracxn Labs' own network and knowledge of the fin-tech space has been hugely helpful as we built out and launched the product. Our mission is to enable small, new-age businesses to succeed and we see credit as a key element that today prevents them from reaching their goals. We are building the technology and data infrastructure that will be required for the larger lending ecosystem to be able to address this market."
On the lending front, the company claims to provide investors with excellent investment opportunities. Using its technology and data, the LoanZen scores credit applications in real-time, using a variety of data sources – banking, accounting, public data, and social data.
Ritesh Kadmawala, co-founder, LoanZen, added:
"At LoanZen, we are excited about leveraging data to enable lending to a large, hitherto unbanked segment of businesses requiring cash flow gap financing.”
The Indian alternative finance space is just at the start of its journey. Last month, AltFi reported the official 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, Kiva.org, Rangde.org, Milaap.org, Lendbox and i-lend – which recently make good on its expansion plans and branched out into Singapore through a partnership with Lenddo, a Singapore-based firm specialised in using non-traditional data for credit scoring and on-line verification.
LoanZen currently operates in Bangalore only, but plans to expand to Mumbai and Chennai by April 2016.