Report: FinTech CRED to Invest in P2P Lending Platform LiquiLoans

Credit card bill payment platform CRED is reportedly planning to invest $10 million in peer-to-peer (P2P) lending platform LiquiLoans.

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

“LiquiLoans has innovated in creating trustworthy financing products,” CRED Founder Kunal Shah said, per the report. “It is a leader in peer-to-peer lending with a strong management team. Its 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 that is charged by traditional banks and nonbank 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 build a trusted and credible P2P lending platform,” LiquiLoans Co-Founder Achal Mittal said, per the report. “We have partnered and will continue to partner strategically with entities that share similar ethos. Our long-term relationship with CRED and this investment will accelerate our goal of creating efficiencies for seamless borrowing and investments.”

CRED generated $251 million in a Series E funding round in October 2021, in a funding drive that pushed its value to $4 billion.

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

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