LiquiLoans

About LiquiLoans

Founded in 2018 by Achal Mittal, Gautam Adukia, and Aagam Maniar, LiquiLoans operates as a peer-to-peer (P2P) lending platform in India. The founders, who previously co-founded the rental platform 'Rentomojo', bring their entrepreneurial experience to the financial technology sector. The company is registered with the Reserve Bank of India (RBI) as an NBFC-P2P.

The platform functions as a digital marketplace connecting individual and institutional lenders with pre-verified, creditworthy borrowers, thereby aiming to reduce the cost of borrowing and increase returns for lenders compared to traditional financial institutions. Revenue is generated through fee-based income from lenders for the platform's matchmaking and assessment services, as well as penal charges from borrowers for late repayments.

LiquiLoans' core business revolves around consumer lending, with a focus on sourcing borrowers through partnerships in sectors like education, healthcare, and home decor. A significant part of their strategy involves offering Zero Cost EMI options to consumers, where the interest cost is subsidized by the service partners, attracting a base of prime borrowers who are not necessarily credit-hungry. The platform facilitates various types of loans, including personal loans, consumer loans for purchases, and deposit financing for rentals. For lenders, the platform is designed to mitigate risk by diversifying investments across a large number of borrowers, limiting exposure to any single borrower. All transactions are managed through an escrow account monitored by a bank-sponsored trustee to ensure compliance with RBI regulations.

The company has secured funding from investors including Matrix Partners, CRED, and Venture Catalysts. This has supported its growth and technological development. It has also entered into strategic partnerships, such as with Cred to offer the Cred Mint investment product. However, the platform has faced regulatory scrutiny, including penalties from the RBI for non-compliance with certain directives.