P2P platform Faircent raises Series B from Muthoot Fincorp, Incofin, others
Aditya Bhandari, Co-head Asia, Incofin said, "Faircent provides an efficient and dynamic platform to directly connect lenders with varied profiles of borrowers.
In a statement Faircent said it will utilise the newly acquired funds towards strengthening the platform's technology and creating greater awareness about P2P lending's significance as a new and highly rewarding asset class.
Speaking on the investment, Rajat Gandhi, Founder and CEO, Faircent, said, "These are exciting times for P2P lending in India, and Faircent is here to unleash the power of retail lending. As India's largest platform, being backed by marquee investors, and the fact that the RBI has come out with progressive guidelines for the sector, is a great validation of Faircent's business model. Moreover, with P2P lending, the financial market is all set to witness the creation of a totally new asset class."
Aditya Bhandari, Co-head Asia, Incofin said, "Faircent provides an efficient and dynamic platform to directly connect lenders with varied profiles of borrowers. Using a comprehensive credit technology, Faircent eliminates substantial costs thereby offering attractive rates of interest for lenders as well as borrowers. We are excited about Faircent's potential to collaborate with the highly underserved small & medium entrepreneurs by offering affordable and transparent financial products.
According to Mohandas Pai, co-founder Aarin Capital and Advisor to Faircent.com, the company has done a great job of balancing the multi-dimensional value proposition of P2P lending to consumers - both an easy and affordable credit option, as well as offering them a high-yield asset class that can easily compete with more traditional investments.
"The team is now strongly positioned to work alongside the new regulations and lead this revolution in the space. We are happy to continue working with the team to help it leverage its learnings and advanced workflows to grow the market for all the stakeholders involved", said Pai.
Faircent leverages automation extensively and one such innovative tool offered by the platform is the Auto Invest feature, a fully-automated feature that matches a lender's investment criteria with the borrower's requirements and automatically sends proposals to the borrower on behalf of the lender, based on pre-selected lending criteria such as loan tenure, amount, and risk profile.
Shinji Kimura, Managing Director of Das Capital and Hiro Mashita of m&s partners jointly said, "Among all the other fintech products in the market currently, P2P lending has emerged as the clear winner, offering consumers both an easy and affordable credit option, as well as a high-yield asset class that can easily compete with any traditional investment instrument. With ample regulatory support from RBI, the future of investments and credit lending in India is going to be driven by P2P lending, and Faircent is poised lead this revolution in the future too, much like it has until now"
India's online P2P lending market attained maturity in 2017, with various factors such as the Reserve Bank of India's guidelines on the sector, the proliferation of digital transactions, the development of financial technologies, and the lack of access to credit contributing to its rise. The sector's inclusion into a larger regulatory ambit will help steer massive growth and expansion for players, helping them gain greater traction in the mainstream financial market, and strengthening confidence among borrowers and investors.
Thomas John Muthoot, Chairman & Managing Director, Muthoot Fincorp said, "Our legacy of over 130 years in the financial services has been centered around the customer. The Group has whole-heartedly recognized Technology as a key enabler in turning people's dreams into reality and in Faircent.com we have identified the pioneering & leading player who has introduced P2P lending to India. Muthoot Fincorp, as part of the Muthoot Pappachan Group, are delighted to invest & partner with this value driven, new-age and forward-looking company and are confident that Faircent can transform the lending landscape in India"
In addition to simplifying access to credit for individuals, Faircent has radically improved the access to finance for SMEs by facilitating loans and reducing costs by connecting them to individual and institutional lenders. By leveraging latest technologies and the ubiquity of smartphones, the platform enables small businesses to benefit from its innovative and convenient credit products. Through Faircent, MSME borrowers can apply for loans online within a few minutes, select their preferred repayment terms, and receive funds in their bank accounts within 2-3 days.