Lendela Rasies $2 Mn In Pre-Series A Funding Round Led By Promise Future International And 2be.lu Investments

Singapore-based personal loan matchmaker Lendela announced on Wednesday to have raised $2 million in pre-Series A financing round led by existing investors Promise Future International and 2be.lu Investments.

Unsplash

The funds will be used to support the company's rapid growth across its Singapore and

Hong Kong markets, with plans to hire new talent in tech development, business development, and marketing.

"With COVID-19, the shift towards digitalization has accelerated across Southeast Asia. Lendela's 100 per cent digital process is even more valuable in a pandemic with restrictions on social interaction. We are excited to soon launch a number of innovations to further empower our borrowers while making us an even more cost-efficient partner for banks and other lenders," said Nima Karimi, chief executive officer and founder, Lendela.

The platform allows borrowers to complete a simple, online application that is immediately shared with available partner lenders. Within 24 hours, applicants are presented with multiple offers and can immediately make their choice and proceed to sign the final loan documents.

Launched in 2018, the company has expanded its network to 40 strategic partners, helping them effectively acquire and convert customers in the saturated personal loan market. These partners include leading banks such as Standard Chartered Bank and HSBC as well as well-established licensed money lenders, said the statement released.

"There is an incredible opportunity for growth and improvement in the region's digital lending space and Lendela is poised to revolutionize it. The company has grown at an impressive pace and I look forward to working with the Lendela team to execute its vision of empowering consumers and bringing greater transparency to the loan application process," added Pierre Lorinet, member of the board of directors, Lendela.

The platform plans to develop its product to further reduce friction for customers, providing customer identification services, and alternative credit scoring, as well as continuing to speed up the loan application process.

Having achieved seven-time growth in 2020, the establishment now serves tens of thousands of borrowers in Singapore and Hong Kong, and Kuala Lumpur.

Digital lending in Southeast Asia is on track to grow 33 per cent annually to reach $18 billion by 2025, according to a study conducted by Google, Temasek Holdings, and Bain & Company.