Peer-to-peer digital lending platform Liquiloans has bagged Rs 12 crore in its pre-Series A round led by Matrix Partners.
Other investors who put in around Rs 2 crore of the total fundraise in their personal capacity include Freecharge founder Kunal Shah, Renaissance Group chairman Abhishek Dalmia and Jitendra Panjabi, who earlier worked at Capital Group.
The startup will use the latest proceeds to establish itself as a trusted brand and build credibility in the p2p lending market. Further, it will keep the focus on extending loans to prime members only.
“We will be targeting prime borrowers, and we will never promise lenders a huge rate of interest as returns. Rather we will offer consistent returns,” said Liquiloans co-founder Achal Mittal to ET.
Mittal along with Gautam Adukia started the company in April last year. They were also the founding member of Rentomojo, a Bengaluru-based consumer leasing platform.
With a teamsize of 25 people, Liquiloans is hoping for the removal of regulatory limitations such as the amount that can be lent and borrowed to expand its business further.
Of late another p2p lending startup Paisadukan had raised Rs 1.6 crore in a seed funding round. Other P2P lending startups include Faircent, Lenden Club, Finzy, Loanzen, and several others.
This is the second investment for the lead investor Matrix after the closing of third fund worth $300 million. The VC firm had recently led Rs 30 crore Series A round in SaaS-based travel management startup ITILITE.