BENGALURU: Peer-to-peer lending platform, Finzy, has raised $2 million as a part of a bridge round, the company said.
Finzy is currently looking to raise $10 million as a part of its Series A round. The company did not disclose the name of the investors.
The funds will be used to strengthen its technology and enhance product offerings for its lenders and borrowers, Finzy added.
The four-year old startup offers personal unsecured loans starting at an interest of 7.99% per annum.
“We have raised this bridge round from our existing investors. We are in the documentation stage with a Silicon Valley based technology fund and expect our Series A to close within a couple of months. To save excessive dilution at an early stage, we would limit our Series A raise to $10 million though we have demand for a much higher investment number,” said Amit More, chief executive officer and founder, Finzy
Finzy claims to have more than 1 lakh customers on its platform.
P2P lending is going through a revamp with larger fintechs, including BharatPe and Cred, entering the space, allowing customers to earn and borrow at competitive market rates.
In August, merchant fintech BharatPe launched a P2P offering called 12% Club to let consumer lenders earn 12% interest on their investments. Members of the product can also borrow at 12% interest as BharatPe launched a separate app for the P2P offering.
The same month, Cred also launched its P2P offering Cred Mint. It allows its user base of 7.5 million with 750 or above credit scores to lend at 9% interest and borrow at 12-15%.
The idea was to build an inflation-beating product for customers with surplus savings, and to counter annual (borrowing) interest percentage rate of credit card revolving, Cred founder Kunal Shah told Mint in an interaction.
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