Faircent is described as India’s largest peer-to-peer lending platform, aggregating creditworthy borrowers and lenders for retail and business loans. The company started operations in 2014 and reports over 6,000 registered lenders and 25,000 registered borrowers, having disbursed a total of Rs. 4.5 crore in just over 18 months. The marketplace uses a transparent rate-discovery model and a unique reverse-auction mechanism to help borrowers reduce interest rates. Founders Rajat Gandhi (CEO) and Vinay Mathews (COO) emphasize building a technology platform for a new industry and plan to refine tech-enabled risk-mitigation algorithms using big data analytics. Faircent positions itself as adding value to both borrowers and lenders and expanding access to credit through its platform. JM Financial’s participation signals investor interest in the company’s P2P model and technology-driven approach. Faircent operates an online P2P lending marketplace that connects lenders with varied borrower profiles using comprehensive credit technology and extensive automation. The platform emphasizes ease of access for unbanked and under-banked consumers and offers products for MSMEs to apply and receive funds quickly. Faircent uses features such as an Auto Invest tool that automatically matches lenders’ criteria with borrower requests. The company positions itself as India’s largest P2P platform and highlights its technology-driven user experience for both lenders and borrowers. Recent regulatory clarity from the RBI and P2P entities being regulated as NBFCs are presented as enablers for the company to scale its technological and operational capabilities. Faircent is backed by marquee investors and aims to expand the market for retail lending as a new asset class. Faircent operates a peer-to-peer lending marketplace facilitating negotiated loans between lenders and borrowers. Founded in 2013 by Rajat Gandhi and Vinay Mathews and based in Gurgaon, the company has disbursed close to Rs 4 crores in the last six months and has a registered lender base of about 5,000. The latest capital will be used to build technology and product and to hire a team to strengthen the business. Management says regulatory arbitrage in the P2P lending sector has eased following an RBI white paper, though questions remain around the presence of physical entities. Faircent is also in talks to raise a larger round in roughly six months to support marketing the business. Interest rates on the platform can range from 12% to 36% based on negotiations between parties.

Total raised

$4M

Funding rounds

3

Latest round

Equity

Latest activity

Jan 2018