Ledger startups pin hopes on P2P to realize lending dreams

As digital ledger startups grab center stage in the hyperactive venture funding environment in the country, they are looking at innovative means of building financial services on their platforms.

From Flobiz, which recently raised $31 million from Sequoia Capital and Think Investments, to Khatabook, which raised $100 million from Tribe Capital and Moore Strategic Ventures at a valuation of $600 million, digital ledger startups are pitching financial services as the means to creating a sustainable business model in this segment.

But traditional channels of sourcing credit are becoming expensive and fiercely competitive. Reason why these technology-enabled startups are looking to peer-to-peer lending, with an ultimate aim is to provide working capital loans to small businesses on their platforms.

Inspired by the P2P models built by Unicorn fintechs BharatPe (12% Club) and Cred (Cred Mint), these startups are looking to create an ecosystem where merchants using their platforms can lend their excess cash to other merchants seeking funds for business growth, said two sources aware of the developments.