Faircent.com, an online platform for peer to peer lending has raised capital at an undertaking valuation of $4 million. The round was led by Devesh Sachdev and Ashish Tiwari, promoters of Fusion Microfinance Pvt Ltd who have invested in the venture in their individual limit.
Founded in 2013 by Rajat Gandhi, Vinay Mathew, and Nitin Gupta, Faircent.com is a marketplace where potential lenders and borrowers can register and then interact amongst themselves to strike deals on lending and borrowing. The user has to only pay for the listing fee.
Once a borrower and a lender come to a mutual agreement, Faircent helps them to legalize the transaction by signing a formal contract. It also helps lenders with the collection and recovery of loans as per official guidelines of RBI for banks and financial institutions. Delay in repayment by borrowers draw a penalty which is pursued by Faircent as part of the process.
“Devesh and Ashish are seasoned professionals from the micro finance industry, we wanted our initial set of investors to be from the banking and finance industry who would bring synergy to our operations through their experience and network,” said Rajat Gandhi.
Due to the transparency in transaction, both lender and borrower have a choice to choose their peer as per their requirement.