P2P lending platform Faircent, on Tuesday, announced it raised an undisclosed amount of capital in a funding round, led by Singapore-based Das Capital and Gunosy Capital, with participation from the company’s existing investors Starharbor Asia Pte Ltd, and M&S Partners Pte Ltd (Sin Growth Partner Pte Ltd).
The Gurugram-based startup aims to utilise the newly acquired funds to strengthen its technology, expand its distribution, and add unique loan offerings for its lenders.
Speaking on the investment, Rajat Gandhi, Founder and CEO, Faircent, said,
“Faircent has worked hard to successfully establish P2P lending as an asset class in India. Currently, loan originations on the platform are at an annualised rate of Rs 600 crore. With support from our marquee investors, we will focus on taking financial inclusion to every part of India while delivering on the expectations of all our stakeholders.”
In May 2018, Faircent claimed to become the first platform to receive the Certificate of Registration (CoR) as an NBFC-P2P from the Reserve Bank of India (RBI).
Over the past year, the company has collaborated with more than 300 partners to offer a variety of product options suited to meet the investment objective of every lender and borrower – from long-term to daily/weekend loans and from a line of credit to working capital loans.
It facilitated loans worth Rs 200+ crore to date through the platform.
“We have been investing in progressive companies which are game-changing and are leading the Indian Market with their technology-based solutions and practices. We believe that Faircent.com not only has a strong asset and credit-based models of financial services but as a pioneer of the P2P lending industry in India has successfully leveraged its learnings to achieve strong market leadership and position,” added Shinji Kimura, CEO, Das Capital.
Faircent, founded by Rajat Gandhi and Vinay Mathews in 2013, is an online platform where people borrow and lend money directly from each other, eliminating intermediaries and the margins they make. In addition to simplifying access to credit for individuals, it has improved access to finance for SMEs by facilitating loans and reducing costs by connecting them to individual and institutional lenders.
The startup claims to have more than nine lakh registered borrowers and 1.2 lakh registered lenders on its platform.
In December 2017, Faircent secured Rs 25 crore ($4 million) in a Series B round led by new investor Incofin Investment Management, a Belgium-based impact investor.
As per a PWC report, the estimated potential of P2P market in Indian is around $4-5 billion for over the next five years.
(Edited by Saheli Sen Gupta)