Online peer-to-peer lending platform Faircent has raised an undisclosed amount of funding from TV Mohandas Pai, the chairman of Manipal Global Education, through Aarin Capital Partners. Company Founder and COO, Vinay Mathews declined to disclose the investment amount and said, “Pai will join the board of Faircent as an advisor”.
Regarding the investment, Pai feels that credit and curated P2P lending market has been highly under-served. Further he adds, “Faircent has not only created access but also brought down the cost of capital for individuals and businesses through its reverse auction model.”
In June 2015, the company raised a pre-series A funding round of $250,000 from Singapore-based M&S Partners Pte. Ltd. Raised funding was used to strengthen the technology, hire talent and grow its brand presence.
The company has around 15,000 borrowers and 3,000 lenders. It has deployments and commitments in excess of Rs 3 crore from individual lenders using the marketplace. Over the platform potential lenders and borrowers register and then interact with each other to strike deals on lending and borrowing. Currently, the service is available only for Resident Indians.
Once an interested individual registers on the platform, post which the Faircent team undertakes a detailed verification process following KYC norms as laid down by the RBI/SEBI for opening bank accounts and online trading accounts. Thus, the company claims all of its users to be verified and authentic.
Once the deal between a borrower and a lender finalises, the company makes them legalize the transaction by signing a formal contract. Whenever a deal finalises, the money transaction is between the two parties only.
P2P lending space is a new space that is growing. There are other startups, such as, i-lend, IndiaLends, Lendbox, etc. which are functional in this segment.