Peer to peer lending marketplace Faircent, which lets users borrow/lend money online, has raised about $250 K in Pre-Series A round of funding led by Singapore based M&S Partners, taking up the company’s value to around a staggering $8 million. Staggering, because thats a Pre-Series A valuation.
M&S is led by Japanese investor Hiro Mashita, the man responsible for hundreds of VC deals in Japan, China, the US and South East Asia over the last 15 years.
Based in Gurgaon and founded by Rajat Gandhi, Faircent serves as a marketplace where potential lenders and borrowers can register and interact to strike deals on lending and borrowing. The company makes revenue by charging an upfront fee once a deal is finalized for its services and facilitating the process.
Rajat Gandhi, co-founder and CEO, Faircent said-
Our biggest success is in unlocking the retail lending side, which till now has been untapped and unheard of in the country.
Faircent plans to use this recent pile of cash to strengthen technology, expand talent base and increase brand building.
The platform, currently in beta lets you easily take up money from willing lenders, or lend money to potential borrowers. Faircent displays a real-time feed, which shows parameters like the current average interest rates on its platform, number of loans approved/disapproved, and average loan amount sanctioned.
Go further down, and you will see five tabs showing different interest rates, categorised into Minimal Risk, Low Risk, Medium Risk, High Risk and Very High Risk Interest rates and loans. You will also see potential borrowers in each category along with the amount being asked to be loaned.
Faircent aims to create a virtual market place where borrowers and lenders can interact directly, without having to go through the traditional financial intermediaries like banks, who have become such behemoths in today’s time that they dictate all terms and conditions for both borrowers and lenders.
Earlier in January, Faircent had secured an undisclosed amount angel investment from Devesh Sachdev and Ashish Tiwari, promoters of Fusion Microfinance.
As per stats, the company has over INR 2.2 Cr lender commitment and loan demand of over INR 1.4 Cr in 9 months of its operations. It claims that over INR 80 lakh of loan offers are being made by lenders every month on the platform through an open bidding model.
The company has been developing its proprietary technology enabled credit appraisal and borrower rating system in India.
Faircent says that it helps to eliminate the high margins and exorbitant charges that banks and financial institutions make on financial transactions.
By following Faircent model, users can interact directly with fellow borrowers/lenders, negotiate terms and conditions about interest rates, tenure of loans, etc, and strike a deal on his own. Faircent makes no intervention in the deal except obviously prompting user to pay a listing fee.
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