LenDenClub, a peer-to-peer (P2P) lending platform, on Tuesday said it will be launching a venture fund to back fintech startups in seed and pre-Series A stage.
The 'LenDenClub Alpha' fund aims to onboard early-stage startups, while offering them mentorship and access to capital thereby enabling them to accelerate their growth.
The company will allocate up to $2-3 million, with an aim to back around 20-25 startups, it said in a statement.
Apart from capital infusion through this VC fund, the company plans to utilise its expertise in the fintech space to mentor these startups to plan and grow.
The fund also aims to assist its investee startups by offering mentorship, technological upgradation, driving customer acquisition and building innovative products for the masses, among others.
With the fund's launch, the company said it is planning to make a strategic move to take early bets that may lead to the expansion of the fintech startup ecosystem.
“India has today emerged as the second biggest start-up hub in the world. With the hyperactive momentum being witnessed across the startup ecosystem, it becomes significant for established start-up players to take the lead in paving a transformative approach toward capability building.
At LenDenClub Alpha, we want promising start-ups to ride on the knowledge, and expertise that we have built over some time, thereby enabling them to grow at an accelerated pace,” said Bhavin Patel, Co-Founder and CEO of LenDenClub.
Founded in 2016 by Bhavin Patel and Dipesh Karki, LenDenClub connects lenders looking for high returns with credit-worthy borrowers looking for personal loans.
It also offers new-age investment options to investors in India. It claims to process over 2.5 lakh loan applications every month.
The company serves two high-growth loan products - InstaMoney for salaried customers and small business loans for merchants and shopkeepers. It has over one million investors on board, the statement said.
In December 2021, the company raised $10 million (around Rs 75 crore) in a Series A round, co-led by Tuscan Ventures, Ohm Stock Brokers, and Artha Venture Fund.
In 2019, it raised $1 million (approximately Rs 7.16 crore) in its pre-Series A round co-led by Artha Venture Fund-I, Transworld Group and Shuchi Kothari of the DSP Group.
