LenDenClub, a peer-to-peer (P2P) lending business, has launched LenDenClub Alpha, a corporate venture capital fund focused on seed and pre-series stage fintech startups. LenDenClub has set aside a $2-$3 million fund for the current fiscal year in order to launch LenDenClub Alpha.
According to LenDenClub, its new venture fund is geared at assisting early-stage entrepreneurs in designing their vision and developing a solid business strategy that offers tech-backed futuristic items to maximise customer impact. LenDenClub Alpha would prioritise companies in the lendingtech, wealthtech, neobanking, underwriting tools, and other related sectors.
When asked about the source of funding for LenDenClub Alpha, Bhavin Patel, cofounder and CEO of LenDenClub, stated that the company is successful and has substantial assets parked to fuel these initiatives.
Patel said, “The overall pool for LenDenClub Alpha will include a combination of the monies we raised as well as our own earnings.”
In December 2021, the firm raised $10 million in a Series A round from a variety of investors including Tuscan Ventures, Kunal Shah, the founder of CRED, and Alok Bansal, cofounder of Policybazaar.
LenDenClub stated at the time of the fundraise that it intended to invest substantially in innovating and improving its unique tech-stack platform in order to help and maintain the expansion of its user base, as well as to support all types of banking transactions undertaken on its platform.
LenDenClub Alpha is a “big leap” toward there objective of India emerging as the global financial leader, according to the business’s newest statement, as the startup seeks to invest in 20-25 startups.
Patel added, “With the frenetic energy seen across the startup ecosystem, it is critical for established startup companies to take the lead in creating a revolutionary approach to skill building,”.
Referring to the startup’s newest effort, he continued, “At LenDenClub Alpha, we want bright entrepreneurs to ride on the knowledge and expertise that we have created through time, allowing them to flourish at an expedited pace.”
Apart from financial injection through LenDenClub Alpha, LenDenClub intends to leverage its fintech expertise by aiding its investee firms with mentorship, technological advancement, driving client acquisition, and producing unique goods for the masses.
According to the startup, the fund’s establishment is a deliberate move to take early investments that may lead to the expansion of the financial startup ecosystem.
Patel and Dipesh Karki created LenDenClub in 2016 with the goal of creating a platform that uses technology to connect borrowers and investors, giving quick loans to borrowers and new-age investment alternatives to investors across the country.
They claimed to have over 3.5 million borrowers and 1.8 million investors on its platform at the time of writing. During FY22, it made new loan disbursements of INR 3,000 crore. According to the startup, its new annual loan disbursements increased 200 times from FY19 to FY22.
In the P2P lending space, LenDenClub currently competes with i2iFunding, CapZest, Monexo, LoanBaba, and IndiaMoneyMart.