P2P companies log revenue jump, thanks to business partnerships

economictimes.indiatimes.com:

Peer-to-peer lending, which has mostly remained confined to the margins of the financial services sector, has reported strong growth in the last financial year.

According to their regulatory filings, a bunch of P2P lending companies more than doubled their revenue in fiscal 2023 from the previous year. According to industry insiders, P2P lenders finally seem to have found a steady business model through partnerships with large consumer-facing applications.

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A P2P lender operates as a platform connecting individual lenders and borrowers. Instead of relying on open market sourcing, players like LenDenClub and Liquiloans started partnering with fintech startups with a large user base like BharatPe, Cred and PhonePe to source customers.

It seems these partnerships have helped boost business volumes, in turn both their revenue and profit. Platforms typically get a commission per disbursal.


“Financial year 2023 was the first time when most of the large partnerships went live and the impact of Covid-19 had also subsided. This helped the companies grow their business significantly,” said the founder of a P2P lending startup on the condition of anonymity.

Strong Top Line

According to financials reported to the Ministry of Corporate Affairs, accessed through data intelligence firm Tofler, Mumbai-based P2P company LenDenClub reported revenue of Rs 315 crore in FY23, up 114% from Rs 147 crore the previous year. Profit before tax,