Loanzen, a peer to peer business loan marketplace startup, has raised an undisclosed seed funding from Angels through TracxnSyndicate.
Loanzen helps businesses which are less than 3 years, or do not have collateral, meet short term cash-flow gaps by offering them short tenor (upto 120 days) loans.
“Currently many small businesses get turned down by banks but are in dire need of short term credit to fuel growth. Our mission to enable small, new age businesses to succeed and we see credit as a key element that today prevents them from reaching their goals. We are building the tech and data infrastructure that will be required for the larger lending ecosystem to be able to address this market,” said Madhu Sudhan, Co-Founder, Loanzen.
Loanzen’s web-based application process has two simple steps- borrowers provide their business, social and financial information for onboarding and post invoices to access loans against invoices. Based on the information provided, LoanZen arrives at a credit score after which a termsheet is issued to the borrower outlining loan terms.
“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, Venkatesh, and Ritesh comes with tremendous credentials. We are excited to see it grow and achieve its purpose,” said Neha Singh, Co-Founder of Tracxn.
Loanzen was founded in September 2015 and officially launched operations on 15th January 2015. The company now works with businesses across sectors including staffing services, equipment providers to hospitals, software services firms, ad agencies, manufacturing companies and sellers on e-commerce portals. Loanzen currently lends in Bangalore and plans to expand to Mumbai, Chennai by April 2016, said a statement.
Source: The Economic Times
