Loanzen gets funding from Zephyr Peacock India

PTI | Updated on November 24, 2019

Loanzen, a start-up that provides financial solutions to the logistics industry, on Sunday said it had 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 the 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 USD 4-5 million (nearly ₹28-35 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 ₹75-80 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 company is currently serving customers in Karnataka. It 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.

Published on November 24, 2019

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like