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Three-year-old fintech start-up LenDenClub, a peer-to-peer lending platform, has disbursed loans worth nearly ₹600 crore in FY21, up from ₹60 crore in the previous fiscal and has turned profitable in Q4 of FY21.
The company is eyeing a five-fold growth in the next two years and aims to disburse ₹1,200 crores worth of loans in FY22.
The company has provided loans to over 1,30,000 unique borrowers and cumulatively 3,60,000 loans, primarily to young salaried professionals. It processes over 25,000-30,000 loan applications and disburses about 15,000 loans every month. The P2P lender currently has a user base of over 15 lakh borrowers and 4.5 lakh lenders on its platform.
Business growth
“At LenDenClub we have grown 1,000 per cent y-o-y and 43 per cent of our customers are repeat customers who rely on us during their tough times. Even amidst the pandemic, we identified the consistency in the investment flow and business grew exponentially. We have seen a considerable growth with respect to all aspects of our business - be it business numbers, headcount/manpower, geographic reach etc. As a company we are growing very fast, thanks to our collaborative team efforts, and became profitable in FY20-21. Our sustainable focused approach has helped us become the first P2P lending company in the industry to turn profitable as on Q4, 2021,” Bhavin Patel, CEO and co-founder, LenDenClub told BusinessLine.
“We believe that the current year will also witness muted growth in the first quarter and then grow exponentially over the next three quarters,” he said.
Recently, LenDenClub also became the first P2P lending company to integrate with Google Pay, going live on its platform, allowing customers to borrow and lend seamlessly, along with making payments. Additionally, the fintech lender has expanded its flagship digital lending platform InstaMoney pan-India.
Financial inclusion
From its presence in seven States, the company has expanded its offering to borrowers from over 19,000 pin-codes. This has benefited population living in rural regions not covered by banks especially, in the small ticket loan category of up to ₹10,000. The company has one of the lowest NPAs in the digital lending space of 3.95 per cent.
LenDenClub aims at fostering financial inclusion and in serving the marginalised, low-income groups and credit-starved MSMEs. The company hopes to scale up disbursement volumes to ₹500 crore on a month-on-month basis by FY23-24, while working towards becoming one of the top lending institutions in the country.
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