Bengaluru-based LoanMeet, a digital lending platform, has raised an undisclosed amount of seed funding from Chinese investors and entrepreneurs Cao Yibin and Huang Wei, and MadhuSudan, CEO of KrazyBee, according to the ET report.
The digital lending platform provides short-term working capital loans to retailers for inventory financing. It targets the segment of retailers who mostly are unable to get loans from financial institutions due to lack of credit history, or insufficient documentation to process loan application.
For inventory financing, Loanmeet aims to become a single point of contact for Indian offline retailers. It plans to use the funds towards aggressive expansion of its customer base.
“Our focus is to use data to build credit models, enabling us to make quick credit decisions. We are a focused fintech platform, and we see tremendous opportunities in offline inventory financing business,” said Sunil Kumar, co-founder of LoanMeet.
The company claims to grow at roughly 50 per cent month-over-month.
In the past few years, the lending sector has seen immense growth where various companies are either operating as NBFCs or as a P2P lending marketplace; offering services to small retailers. India Lends, Lendbox, Loancircle, Loanmeet, Faircent, and Cashkumar are some of the major players in the market today.
Image credit: Nick Youngson