Loanzen, a P2P business loan marketplace, has bagged investment in seed funding round from angels via TracxnSyndicate. The startup helps business which are less than three years old and do not have collateral by providing short tenor (up to 120 days) loans. With loanzen businesses which have been out of bank lending scope are tied to lenders who lend to companies with help of Loanzen’s credit scoring model.
Through Loanzen’s web application borrower can apply in 2 simple steps-
- Provide their business, social, and financial information for onboarding
- Post invoices to access loans against invoices.
According World Bank investment arm IFC study with RBI and SIDBI, the market size for unsecured short term loans is $120 billion- an opportunity being targeted by Loanzen. According to Neha Singh of Tracxn, “Loanzen is addressing an important gap in the lending ecosystem as it empowers the small and medium businesses to access hassle-free short term credit. The team comprising of Madhu Sudhan, Venkatesh Sankararaman, and Ritesh Kadmawala comes with tremendous credentials. We are excited to see it grow and achieve its purpose.”
The startup was founded in September 2015 and officially unveiled operations on 15th January 2015. The company presently works with business all over sectors including equipment providers to hospitals, staffing services, software service firms, ad agencies, manufacturing companies and sellers on eCommerce portals. Loanzen presently functions in Bangalore and is planning to expand to Mumbai and Chennai in April 2016.