Peer-to-peer, lending platform LoanMeet has raised an undisclosed amount of seed funding from Chinese investors Cao Yibin and Huang Wei and KrazyBee.com co-founder and CEO Madhusudan E, as per a report by VCCircle.
The funds raised will be used for expanding the company’s customer base. The company currently has 8,203 customers and 779 lenders. It provides business and personal loans upto Rs 4 lakh. The publication reported that the company is growing 50% on a month on month basis. The company claims that the loan disbursement is done within 72 hours.
In the About Us section, LoanMeet says that it needs only need five sets of documents to build a borrower credit profile. “If we need additional information, we might ask for additional documents,” it added. It says that it will process a loan in days and not in months or weeks. The company says it will also rate all its borrowers and list their profile and loan details on their site. For lenders who have never offered a loan, the company advises them to set a small loan amount with.
Meanwhile, LoanMeet says it will offer personal loans, vehicle loans, credit consolidation loans, rental deposit loan, business loans and medical loans. For credit consolidation loans, LoanMeet will consolidate credit card payment into a single loan. “Please note that if you have a history of default/settlement then you would not qualify for this loan. Also, you should not be too late on your payments,” it added.
The company was started by Sunil Kumar and Ritesh Singh who function as CEO and CTO respectively.
RBI views on P2P lending
In April 2016, the Reserve Bank of India (RBI) said it is looking to treat online peer-to-peer (P2P) lending platforms as non-banking finance companies (NBFCs) and bring their activities under its purview, it said in a consultation paper. The RBI is looking to regulate the sector with measures including requiring minimum capital of Rs 2 crore or prohibiting them from promising “extraordinary returns.” More details here.
The online lending space has been witnessing a lot of funding activity recently.
- Earlier today, LendingKart announced that it has raised Rs 50 crore loan from Yes Bank.
- FtCash, a payments company that started lending to merchants in March this year raised an undisclosed amount from 500 startups and Ivycap Ventures in pre-series A round.
- Ezcred raised Rs 6.5 crore in a seed round of funding from various investors including Dheeraj Pandey, CEO Nutanix; Rajesh Yohannan, former managing director at Citibank; and Akash Garg, director of engineering at Uber.
- Paysense raised $5.3million in series A from Jungle Ventures. It had earlier in 2015, it raised $2.3 million from Nexus Venture partners.
- Lending platform for salaried professionals, LoanTap raised $ 3 million in a Series A round of funding from HNIs including Abhishek Pandey and Jaysukh Sapra, in August last year.
- Another competitor Capital Float, raised $25 million in a series B round of funding led by Creation Investments Capital Management, LLC, with significant participation from existing investors SAIF Partners, Sequoia India, and Aspada.