Investment firm Matrix Partners invested an undisclosed amount in peer-to-peer lending platform LiquiLoans on Tuesday. According to media reports, the amount invested is Rs 12 crore.
Kunal Shah, Founder of Cred and Freecharge; Ashutosh Taparia, former Joint Managing Director of Famy Care; Abhishek Dalmia, Chairman of Renaissance Group; Jitendra Punjabi, former Macro Strategist of Capital Group and Anuj Golecha Co-founder of Venture Catalyst, also participated in the round.
Avnish Bajaj, Founder and Managing Director, Matrix India said,
“Peer to Peer Lending is an emerging sector in India and we believe it will play an integral role in shaping the Indian consumer credit market in the near term. We are excited with Gautam and Achal’s vision for the P2P industry in India.”
Mumbai-based LiquiLoans facilitates borrowing and investing by providing investors access to borrowers. The P2P-NBFC licensed lending platform was founded by former-Rentmojo co-founders Gautam Adukia and Achal Mittal, in April last year.
“We understand the core needs of the borrower to be interest rate and convenience. Given the technology platform’s ability to directly connect borrowers and lenders, we are able to provide consumers with cheaper and faster loans than existing alternatives,” said Achal Mittal.
LiquiLoans uses technology to match borrowers and lenders, eliminating the margin charged by traditional banks and NBFCs. According to Gautam, LiquiLoans aims to create a safe debt asset class and enable investors to increase the financial return on their portfolio. The platform uses channels to access prime borrowers and use a risk assessment model to underwrite these borrowers.
Matrix Partners India in January first week announced the close of its Fund III with $300 million being the committed capital. A few weeks ago, Matrix Partners told YourStory that it will continue to invest in companies across seed, early stage, Series A and B stages in different sectors. Their current portfolio includes Ola, Practo, Dailyhunt, Treebo and Limeroad.
“We feel this year is the best time to be investing in fintech. Last year, a lot of people got into fintech as the infrastructure was solved for by IndiaStack, UPI and there was money available. But now, I think founders realise fintech will go through its cycles and needs a strong team,” said Vikram Vaidyanathan of Matrix Partners to YourStory.