Finzy, one of India's peer-to-peer (P2P) lending platforms, has closed its Pre-Series A round with an investment of USD 2.3 million from undisclosed investors from the Banking, Financial Services and Insurance (BFSI) industry.
The round includes the USD 1.3 million that was raised in the first tranche in March 2018.
The company plans to use the funds for geographical expansion, technology investment and creating stronger distribution networks.
Following the fundraising, Amit More, founder and CEO of Finzy, said, “Our seed investors also participated in this Pre-Series A round with a perceived four times increase in valuation since the Seed round. This reflects our investors' confidence in Finzy’s positioning, progress and potential. The round will help us scale our business closer towards break even.”
The fintech is one of the first few P2P companies in India to have received the NBFC-P2P certification from RBI after the master directions were published in October 2017.
Vishwas Dixit, co-founder and CMO, Finzy, said, “RBI regulations have ensured that only competent platforms continue to offer P2P lending services. Lenders clearly understand the power of monthly returns at 15.5 per cent per annum. We see more than 40 per cent of lenders returning to make repeat investments.”
Finzy, a product of Bridge Fintech Solutions Pvt. Ltd. is a Peer to Peer lending (P2P Lending) platform that started operations in 2017 in Bangalore. The company claims that in the last six months, monthly loan disbursements have more than doubled. The company expects an additional growth of over three times by March 2019.
Currently the company is a team of 60 people. They claim that they do not have even a single NPA to date. Finzy is planning to raise Series A round early next year.
Apart from Finzy, other players in the P2P market in India include i-lend.in, Faircent.com, LenDenClub, Lendbox.in, among others. A first-of-its-kind association was also formed by these companies earlier this year, when, they came up with self-regulatory norms.