With over Rs 500 crores in loan disbursements, online peer-to-peer lending platform LenDenClub on Thursday said it has turned profitable in the financial year 2020-21.
According to the company, it provided 3.6 lakh loans during this period, primarily to young salaried professionals.
Its loan disbursement grew close to Rs 600 crores in FY 20-21 as against Rs 60 crores in FY 19-20 and Rs 13 crores in FY 18-19, a statement said, without disclosing further details of its balance sheet.
LenDenClub claims to have a user base of over 15 lakh borrowers and 4.5 lakh lenders on its platform. Average ticket size stands at Rs 30,000.
The Bengaluru-based company targets a five-fold growth in the next two years and aims to disburse Rs 1,200 crores worth of loans in FY 21-22.
LenDenClub has recently integrated Google Pay on its platform, allowing customers to borrow and lend via the app.
The fintech firm has also expanded the presence of its flagship digital lending platform InstaMoney across the country. LenDenClub has presence in seven states, with service available across 19,000 pincodes.
InstaMoney provides quick loans at an interest rate ranging between 0% (minimum for no cost EMI finance) to 2.99% (maximum) per month for a tenure of 3-5 months. LenDenClub also offers small merchant loans of up to Rs 1.5 lakhs to borrowers who are into businesses.
"After the economy has opened up in September 2020, we have witnessed a fresh upsurge in demand for credit across both retail and businesses. We believe that current year will also witness muted growth in the first quarter and then grow exponentially over the next three quarters. Lending is poised to grow at its highest rate in the next three years, and P2P lending will be one of those important elements in lending growth,” Bhavin Patel, co-founder and CEO, LenDenClub, said.
Operated by Innofin Solutions, LenDenClub was founded in 2016 by Patel and Dipesh Karki.
In its last known fundraising, the company secured $1 million in a pre-Series A funding round led by Artha Venture Fund in August 2019.
Several family offices like the UAE-based Transworld Group and angel investors Shuchi Kothari, Ramakant Sharma, Narendra Karnavat and Nandi Mehta participated in the round.
In October 2017, LenDenClub had raised $500,000 from an undisclosed Mumbai-based venture capital fund as well as existing investors Venture Catalysts and the Anirudh Damani-founded Artha India Ventures.
In April 2016, it had raised an undisclosed amount in a seed round from Venture Catalysts and Anirudh Damani.