Loanzen, a peer to peer business loan marketplace startup, today announced that it has raised an undisclosed seed funding from Angels through TracxnSyndicate.
Loanzen helps businesses that have been set up for less than three years, or do not have collateral, meet short term cash-flow gaps by offering them short tenor (upto 120 days) loans.
Madhu Sudhan, Co-Founder, Loanzen commented that currently many small businesses get turned down by banks but are in dire need of short term credit to fuel growth.
"Our mission to enable small, new age businesses to succeed and we see credit as a key element that today prevents them from reaching their goals. We are building the tech and data infrastructure that will be required for the larger lending ecosystem to be able to address this market ."
For borrowers, Loanzen provides a platform that helps them access short term loans from a variety of sophisticated lenders quickly and efficiently, from the comfort of their offices. .
According to Venkatesh S, Co-Founder, Loanzen, "With businesses increasingly moving online and with the rapid growth driven by internet marketplace transactions, we believe that the traditional banking model of one-size-fits-all financial product delivery is poised for change."
Sudhan said: "TracxnSyndicate helped us connect with an eclectic group of internet entrepreneurs, financial industry experts and notable angels who have helped contribute ideas and connections for the venture.
TracxnLabs own network and knowledge of the fin-tech space has been hugely helpful as we built out and launched the product."
Loanzen was founded in September 2015 and officially launched operations on January 15, 2015. The company now works with businesses across sectors including staffing services, equipment providers to hospitals, software services firms, ad agencies, manufacturing companies and sellers on e-commerce portals. Loanzen currently lends in Bengaluru and plans to expand to Mumbai, Chennai by April 2016.