Peer-to-peer (P2P) Lending Startup: LenDenClub launches Venture Fund in order to back Fintech Startups
- ByStartupStory | April 13, 2022
LenDenClub, the peer-to-peer (P2P) lending startup, has launched a corporate venture capital fund named LenDenClub Alpha, that focuses on seed and pre-series stage fintech startups.
For the current financial year, LenDenClub has kept aside a $2 Mn-$3 Mn fund in order to launch LenDenClub Alpha.
Its new venture fund is aimed at helping early-stage startups to design their vision and build a robust business model that offers tech-backed futuristic products in order to create optimum consumer impact, as per LenDenClub.
In the space of lendingtech, wealthtech, underwriting, neobanks, tools and other allied segments, LenDenClub Alpha would focus on startups.
The startup in its latest funding round had raised $10 Mn in a Series A round from a range of investors including Kunal Shah, the founder of CRED, Tuscan Ventures, and Alok Bansal, cofounder at Policybazaar in December 2021.
LenDenClub had said at the time of the fundraise that it was aiming to invest heavily in innovating and upgrading its proprietary tech-stack platform in order to aid and upkeep the growth in its customer base along with supporting all kinds of banking operations that are conducted on its platform.
LenDenClub plans to utilise its expertise in the fintech space by assisting its investee startups with mentorship, driving customer acquisition, technological upgradation, and building innovative products for masses, apart from capital infusion through LenDenClub Alpha.
In order to take early bets that may lead to the expansion of the fintech startup ecosystem, the fund’s launch is a strategic move, said the startup.
LenDenClub was founded in 2016 by Patel, along with Dipesh Karki in order to build a platform that leverages technology so as to bring borrowers and investors together, providing instant loans to the borrowers and offering new-age investment options to the investors across the country.
Currently, LenDenClub claims to have over 3.5 Mn borrowers and 1.8 Mn investors on its platform. During FY22, it has registered fresh loan disbursements of INR 3,000 Cr. From FY19 to FY22, its fresh annual loan disbursements grew 200 times, said the startup.
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