Monday, June 24

P2P Lending Firm Monexo Fintech To Raise $5 Million in Equity

P2P money lending marketplace Monexo Fintech plans to raise an amount of $5 million in form of equity. The company plans to invest these funds in IT and infrastructure, which require spontaneous capital addition in the initial stages of any online business.

Mukesh Bubna, the founder and CEO of the company said that they are looking for a strategic patient capital. Patient capital means those investments in which investors do not seek quick returns. The company had also received the license from RBI to operate an NBFC-cum-P2P lending platform last Friday.

This type of lending platform allows the people to borrow and lend money without the need of any financial institution as a mediator.

“We have begun talking to investors. With the RBI regulation in place, there is much more positivity around the P2P segment. We are planning to raise capital this financial year,” Bubna said.

The company had earlier planned to raise an amount around $10 million but it came down to $5 million as Monexo Fintech found the RBI guidelines restrictive for its business strategies.

Under this system, the aggregate loan taken by the borrowers at any point of time across all P2Ps cannot be more than Rs 10 lakh. The lending rate at Monexo’s platform ranges from 13% to 30%.

“We are approaching high net worth individuals to lend. For them, P2P can be a good alternative to mutual fund investment. But they may be more comfortable in investing bigger amount than just about Rs 10 lakh,” said the CEO.

The firm’s assets under management amounted to Rs 20 crore as of April. About 20% of this was lent for education financing. We might now witness the funding round of Monexo Fintech soon and also find out which investors were a part of the funding.