CRED plans to take a position about $10 million in its lending accomplice LiquiLoans because the Indian fintech startup broadens its possession in monetary companies, TechCrunch has discovered and confirmed.
The Bengaluru-headquartered startup’s funding in Mumbai-headquartered LiquiLoans will increase the lender’s valuation to shut to $200 million, the companies mentioned in a press release.
CRED partnered with LiquiLoans final 12 months to launch CRED Mint, a service that permits CRED clients to lend to 1 one other at an rate of interest of as much as 9% yearly. “Their work has helped broaden entry to credit score, and we look ahead to partnering with them of their subsequent section of development and innovation,” mentioned Kunal Shah, founder and chief govt of CRED, in a press release.
The funding will assist LiquiLoans, which runs a worthwhile enterprise, “strengthen its know-how capabilities and take part within the ecosystem of belief that CRED permits,” the startup mentioned in a press release.
“Our purpose has been to construct a trusted and credible P2P lending platform. To this finish, now we have partnered and can proceed to accomplice strategically with entities that share an analogous ethos,” mentioned Achal Mittal, co-founder of LiquiLoans, in a press release. “Our long-term relationship with CRED and this funding will speed up our purpose of making efficiencies for seamless borrowing and investments.”
Peer-to-peer lending has made inroads in India in recent times, however some startups are starting to wrestle to take care of the service.
LiquiLoans would be the newest in a sequence of investments that CRED has made previously one 12 months. The startup, which affords customers the power to handle and pay their bank card and scores of different payments on time in addition to entry to D2C manufacturers and loans, invested in lender CredAvenue earlier this 12 months and expense administration platform HapPay in December.
CRED, backed by Tiger International, Sequoia India, Alpha Wave Ventures and Dragoneer and valued at $6.4 billion, additionally engaged with Amazon-backed Smallcase earlier this 12 months, initially to discover an funding and later for a majority acquisition, TechCrunch reported earlier. The talks didn’t materialize right into a deal due to disagreements over valuation, in response to three folks accustomed to the matter.