Tiger Global to step into P2P Lending by partnering with LenDenClub
Tiger Global – backed fintech platform Jar is gearing up to launch its peer-to-peer (P2P) lending product, Jar Plus, in partnership with NBFC LenDenClub
Powered by Tiger Global, currently in the testing phase; Jar Plus will facilitate direct lending between borrowers and lenders, leveraging the platform’s capabilities to source customers for LenDenClub, which will assess borrowers and manage loan disbursement. P2P lending is considered a high-return alternative investment avenue, provided all regulations set by the Reserve Bank of India (RBI) are followed. The segment has seen increasing interest from fintech players aiming to tap into the lucrative returns it offers. Similar initiatives have been launched by other fintech platforms like CRED and BharatPe in collaboration with RBI-registered P2P NBFCs. The RBI has been actively tightening regulations on P2P lending following observations of platforms operating outside guidelines, including flaws in the KYC processes.
The regulator has engaged with licensed platforms, conducting supervisory visits and issuing corrective measures where necessary. Jar, founded in 2021 by Nishchay AG and Misbah Ashraf, has diversified its revenue streams through various financial products. The platform, which encourages micro-savings by rounding up daily transactions and investing the spare change, recently raised $32 million in Series A funding led by Tiger Global in February 2022. Despite generating operating revenue of approximately Rs 8.7 crores in its first full fiscal year FY23, Jar reported a net loss of Rs 122 crores. The introduction of Jar Plus into the market represents a strategic move to accelerate monetization efforts and broaden its financial product offerings along with LenDenClub. As Jar Plus undergoes further testing and development, the company aims to position itself as a significant player in India’s fintech landscape, catering to the growing demand for innovative investment solutions and alternative financing options.
[Image Sources: Contracts-for-Difference, LenDenClub]
