P2P lending platform Finzy raises $2 million in bridge round

Finzi is currently looking to raise $10 million as a part of its Series A round. The company did not disclose the names of the investors.

Finzi said the funds will be used to strengthen its technology and enhance product offerings for its lenders and borrowers.

The four-year old startup offers personal unsecured loans starting at an interest rate of 7.99% per annum.

“We have raised this bridge round from our existing investors. We are in the documentation phase with a Silicon Valley based technology fund and expect our Series A to be closed within a few months. To avoid excessive dilution at an early stage, we will limit our Series A to $10 million, although we have demand for much higher investment numbers,” said Amit More, CEO and Founder of Finzi.

Finzy claims to have over 1 lakh customers on its platform.

P2P lending is improving with large fintech companies including BharatPe and Cred, allowing customers to earn and borrow at competitive market rates.

In August, merchant fintech BharatPe launched a P2P offering called 12% Club to let consumer lenders earn 12% interest on their investments. Members of the product can also borrow at 12% interest as BharatPe has launched a separate app for P2P offering.

In the same month, Cred also launched its P2P offering, Cred Mint. It allows its user base of 7.5 million with a credit score of 750 or above to lend at 9% interest and borrow at 12-15%.

Cred’s founder Kunal Shah told Mint in an interview that the idea was to create an inflation-beating product for customers with surplus savings and to counter the annual (borrowing) interest rate of revolving credit cards.