[Funding alert] Fintech startup Loanzen raises funds from Zephyr Peacock India
Loanzen, a startup that provides financial solutions to logistics industry, on Sunday said it has raised funding from Zephyr Peacock India Growth Fund.
However, it didn't disclose the funding amount.
Existing investor Kae Capital also participated in the round, a statement said.
"Loanzen will invest the funds raised in development of technology, build data analytics teams, scale operations in existing locations across Karnataka and expand to new markets," it added.
While Loanzen declined to comment on the amount of funding or valuation, sources suggest the company has raised about $4 million-$5 million (about Rs 28 crore-Rs 35 crore) in this round.
Zephyr Peacock India Growth Fund is a private equity fund investing in small and medium enterprises in India.
Loanzen provides loans to purchasers of used commercial vehicles, including operators of small CV fleets, and first-time buyers. These purchasers have limited financing options due to inadequate credit history and lack of documented income.
It uses proprietary underwriting processes based on alternate data sources to meet the needs of its customer segment.
"Given the rapid growth in the logistics segment with increasing penetration of technology, we are looking to scale up over the coming year... We are planning to target a Rs 75 crore-Rs 80 crore loan book addressing a base of over 2,000 customers in the coming year," Loanzen Co-founder Madhu Sudhan said.
Headquartered in Bengaluru, the startup is currently serving customers in Karnataka and plans to expand to other states in South India in the coming months.
Abhijeet Kudva, Managing Director at Zephyr Peacock, said Loanzen's loans have helped over 500 drivers and vehicle operators already.
"We expect Loanzen to become a leader in logistics financing, supporting over 15,000 customers in the next three to five years," he added.
In February 2019, Zephyr Peacock India Growth Fund led a Rs 55 crore funding round in Shiksha Finance, a Chennai-based education finance company, said a senior executive.
(Disclaimer: Additional background information has been added to this PTI copy for context)
(Edited by Evelyn Ratnakumar)