Peer-to-peer lending platform Finzy announced that it has raised close to $1.3 million in first round of pre-Series A from investors in the industry.
The company is expecting to raise a second round of funds from a similar set of pre-identified investors within the next 60 days.
According to the company, it will be using these funds to accelerate growth by investing in technology, making the processes leaner and faster while building their in-house team.
The company also stated that a significant amount of the funding will be utilised for geographical expansion across Tier I cities.
Started in 2016 by Abhinandan Sangam, Amit More and Vishwas Dixit, Finzy is a digital platform that offers easy, secure, and quick process to its borrowers to get loans at a personalised rate of interest.
The startup helps connect verified borrowers looking for an affordable personal loan with investors looking to invest in a new risk optimised asset class through a proprietary credit assessment algorithm and granular diversification.
Commenting on the development, Amit, Co-founder & CEO, Finzy, said,
“Our investors firmly believe in the team, our product positioning and scalability of solution that we offer to our lenders and borrowers. We have maintained a very focused customer-centric approach while designing our products and processes, as a result of which in our first 10 months of operations we do not have a single default in any borrower EMI.”
Abhinandan, Co-founder & CTO, Finzy, added,
“We are investing in newer technologies to scale the business and enhance customer experience. Our customers love us for the transparency and simplicity. We offer our borrowers complete flexibility of prepayments without any additional charges. We provide consistent 16 percent plus return to our lenders from their investment spread across granular loans.”
Earlier, in January, India’s peer-to-peer lending companies came together to form the Association of P2P Lending Platforms. Being a representative body for its members and the P2P lending industry, it will also be expected to work in conjunction with the government and regulatory authorities on matters of compliance, and to further the cause of financial inclusion.
Tarush is driven towards delivering unbiased and accurate reportage while engaging with as many mediums as possible to narrate a fresh perspective. Working for the past few years in the digital space with YourStory, he has covered the Indian technology ecosystem extensively, focusing on new age Fintech companies, while building strong connects within the industry.