CRED will invest in the P2P lending platform LiquiLoans

Credit card bill payment platform CRED plans to invest $10 million in a peer-to-peer (P2P) lending platform LiquiPrêts.

With this investment, CRED would acquire a minority stake, LiquiLoans would be valued at $200 million, and the two companies would form a strategic alliance, expanding their existing relationship, Inc42 reported Friday (September 16), quoting a statement from CRED.

“LiquiLoans has innovated by creating reliable financing products”, said the founder of CRED Kunal Shah said, according to the report. “It’s a leader in peer-to-peer lending with a strong management team. Their work has helped expand access to credit, and we look forward to partnering with them in their next phase of growth and innovation.

Shah reportedly participated in LiquiLoans’ pre-Series A funding round in 2019, according to the report.

LiquiLoans’ P2P lending platform uses technology to match borrowers and lenders while eliminating the margin charged by traditional banks and non-bank financial companies (NBFCs). This makes the process cheaper for borrowers and more lucrative for investors, according to the LiquiLoans website.

“Our goal has been to create a reliable and credible P2P lending platform”, co-founder of LiquiLoans Achal-Mittal said, according to the report. “We have established and will continue to establish strategic partnerships with entities that share a similar philosophy. Our long-term relationship with CRED and this investment will accelerate our goal of creating efficiencies for seamless borrowing and investing.

CRED raised $251 million in a Series E funding round in October 2021, in a capital campaign that brought its value to $4 billion.

Read more: Indian FinTech Cred’s $251M Funding Brings Company Value to $4B

As PYMNTS reported at the time, CRED is app-powered and an India-based members-only club that rewards users for timely credit card bill payments with exclusive offers and experiences. .

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