Loanzen, a peer to peer business loan marketplace startup, has raised an undisclosed amount of sum from Kae Capital. The Bengaluru-based digital lending platform had earlier raised an undisclosed seed funding from Angels through TracxnSyndicate.
The fintech firm will deploy fresh funds to expand operations. It also holds NBFC licence by RBI.
Incorporated in September 2015 by Madhu Sudhan, Venkatesh Sankararaman, and Ritesh Kadmawala, Loanzen works with businesses, which are less than three years old, to get short-term loans for up to 120 days. The ticket size of such loans varies between Rs 1 lakh and Rs 10 lakh.
Its offerings include staffing services, equipment providers to hospitals, software services firms, ad agencies, manufacturing companies and sellers on e-commerce portals.
Loanzen operates in the field of financing used commercial vehicles. The company is focused on bringing to market customised credit products that address the needs of small businesses in the logistics sector and businesses operating vehicles for captive use. The startup currently operating in Bengaluru, Karnataka.
At Loanzen platform, borrowers provide their business, social and financial information to access loans. Based on the information provided, Loanzen gives credit score after which a term sheet is issued to the borrower for the loan applied.
The company mainly concentrates on vehicles such as Tata Ace and other small commercial vehicles, which are mostly used for intra city goods movement requirements.
With the latest financing round, Loanzen aims to shift gears from being a loan aggregating platform to start lending from its own books after being awarded the lending licence. The company has set a target of creating a loan book of Rs 25 crore by the end 2018.
The development was reported by ET.