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Draft:Lendbox

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Transactree Technologies Private Limited
Company typePrivate
IndustryFinancial
FoundedNovember 2015; 8 years ago (2015-11) in New Delhi, India
FounderEkmeet Singh (CEO)
HeadquartersL-92 Outer Ring Road,
New Delhi, Delhi
,
India
Area served
India
Key people
Websitelendbox.in

Lendbox (officially known as Transactree Technologies Private Limited) is an Indian P2P lending, P2P investing non-bank financial institution company founded in 2015 and based in New Delhi.[1][2]

In September 2024, Lendbox reinvested about Rs. 7000 crores of it's existing Mobikwik Xtra's investors money without their explicit consent.

History

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Lendbox was founded by Ekmeet Singh, Bhuvan Rustagi, and Jatin Malwal in 2015. The company provides a platform for peer-to-peer lending allowing individuals to invest in loans and borrowers to obtain funding directly from individual investors.[3]

Lendbox offered multiple P2P services both directly and through its partners (like Mobikwik Xtra). For fixed investments, they provided an annual interest rate of 13.99%. However, if withdrawals were made before maturity, the interest rate was reduced to 8% per annum. For flexible investments, Lendbox offered up to 12% interest per annum.[4]

Funding

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Lendbox raised Rs. 6 crore from it's first investor, IvyCap Ventures in a pre-series financing round.[5]

Risk of P2P investment

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Lendbox as a P2P platform carries inherent risks including credit risk, market risk and operational risk. There is no guarantee that the loan will be re-paid by the borrower on time.[6]

Certification and Recognitions

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In 2019, Lendbox received the NBFC-P2P certification from the Reserve Bank of India (RBI) allowing it to operate as a registered P2P lending platform.[7]

Lendbox was also listed among the top 10 P2P lending platforms in India by The Indian Wire in 2018.[8][9]

Financial Performance

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By the fiscal year 2025, Lendbox expects a revenue growth of 20% due to it's expanding market presence.[10][11]

Partnerships

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Lendbox partnered with several fintech platforms including EaseMyDeal, Cashe, TransUnion (formerly TrueCredit) and Mobikwik (for both Xtra and Zip).[12][13]

Controversies

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System loopholes

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Between December 2022 and March 2023, Lendbox faced a significant issue wherein approximately 457 scamster accounts exploited system loopholes. These accounts allegedly deposited cash into various P2P lending schemes and then withdrew the amount twice by making fraudulent refund requests—once through the Lendbox or Mobikwik app and a second time via NPCI, citing non-receipt of funds. This resulted in a loss amounting to approximately Rs. 10 crore.[14]

Lendbox filed an FIR against the culprits to address the situation.[15]

Unauthorized Loan Scam

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Several people reported that Lendbox negatively impacted their CIBIL scores despite not having taken any loans from the platform.[16] Lendbox clarified that these loans were issued by their partner, Mobikwik.[17][18][19]

Operational Changes

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Following guidelines issued by the RBI in March 2024, Lendbox ceased the 'Anytime Withdrawal' feature from September 2024 due to which existing funds were subsequently re-invested without explicit consent from users and approval for borrower's list.[20][21][22]

Approximately Rs. 7000 crore was mapped as loan against user wishes in Mobikwik Xtra.[23]

Company also shifted its focus to fixed-tenure products in order to comply with regulatory requirements.[24]

References

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  1. ^ Nayanam, Shivam (30 August 2024). "Lendbox Review: Debt Investing Made Accessible". Aayush Bhaskar. Retrieved 11 October 2024.
  2. ^ "How lendbox, a bootstrap-funded startup, is addressing the credit needs of over 6 million borrowers". The Hindu. 1 February 2024. ISSN 0971-751X. Retrieved 11 October 2024.
  3. ^ Team, DNA Web. "Why P2P lending platforms like lendbox are attracting new age investors?". DNA India. Retrieved 11 October 2024.
  4. ^ Bhalla, Tarush (19 September 2022). "MobiKwik launches investment product Xtra, scales AUM to over Rs 100 crore". The Economic Times. ISSN 0013-0389. Retrieved 11 October 2024.
  5. ^ Srinivasan, Supraja (26 November 2018). "IvyCap Ventures makes first investment in P2P lending through Lendbox". The Economic Times. ISSN 0013-0389. Retrieved 11 October 2024.
  6. ^ Bhasin, Tinesh (13 October 2016). "Lending on P2P platforms is risky". Business Standard. Retrieved 11 October 2024.
  7. ^ "Lendbox Receives NBFC - Peer-to-Peer (P2P) Certification from the RBI". Deccan Chronicle. 2 February 2019. Retrieved 11 October 2024.
  8. ^ Varun (25 August 2018). "List of top 10 P2P lending startups in India". The Indian Wire. Retrieved 11 October 2024.
  9. ^ Varun (19 April 2019). "Lendbox Review : Details & Review of P2P Lending For Investors". The Indian Wire. Retrieved 11 October 2024.
  10. ^ Bhakta, Pratik (29 November 2023). "P2P companies log revenue jump, thanks to business partnerships". The Economic Times. ISSN 0013-0389. Retrieved 11 October 2024.
  11. ^ Ramanathan, Ajay (3 July 2024). "Lendbox expects revenue to grow by 20% in FY25". Financialexpress. Retrieved 11 October 2024.
  12. ^ "EaseMyDeal Partners with LendBox to launch P2P Investment on its App at Flat 10 per cent p.a." ThePrint. 21 December 2023. Retrieved 11 October 2024.
  13. ^ "Lendbox partners with leading fintech platforms Cashe & True Credits to fuel future growth". The Tribune. 8 February 2024. Retrieved 11 October 2024.
  14. ^ Shekhar, Raj (7 August 2023). "Fraudsters use system error to dupe lending platform of Rs 10cr". The Times of India. ISSN 0971-8257. Retrieved 11 October 2024.
  15. ^ Thathoo, Chetan (10 August 2023). "Scamsters Exploit System Error To Defraud P2P Lending Startup Lendbox Of INR 10 Cr". Inc42 Media. Retrieved 11 October 2024.
  16. ^ Alam, Sahil (9 May 2024). "Mobikwik Zip Loan incorrect reporting and unfair late payments fees". TechnoFino. Retrieved 11 October 2024.
  17. ^ Mitra, Chandrajit, ed. (2 June 2024). ""My Mistake Was...": Finfluencer Anupam Gupta Victim Of Loan Fraud". NDTV.com. Retrieved 11 October 2024.
  18. ^ Singh, Sumit (29 December 2023). "Financial Scam Alert: Possible Unauthorized Loans Impacting Multiple Individuals via lendbox.in, Check Your CIBIL Scores Immediately". Punekar News. Retrieved 11 October 2024.
  19. ^ "Cibil Showing a loan from Transctree Technologies Pvt Ltd but I've not Taken any Loan | Consumer Complaints Court". 23 March 2023. Retrieved 11 October 2024.
  20. ^ Bhakta, Pratik (22 March 2024). "P2P lenders to stop 'liquid funds' as RBI peers into business". The Economic Times. ISSN 0013-0389. Retrieved 11 October 2024.
  21. ^ "P2P lenders under stress; Pocket FM's unicorn funding round". The Economic Times. 22 March 2024. Retrieved 11 October 2024.
  22. ^ Bhakta, Pratik (5 September 2024). "P2P investors take to social media to vent against new RBI rules". The Economic Times. ISSN 0013-0389. Retrieved 11 October 2024.
  23. ^ Singh, Ritu (9 September 2024). "MobiKwik Xtra suspends 'anytime withdrawals' following RBI's recent directions on P2P lending - CNBC TV18". CNBC TV18. Retrieved 11 October 2024.
  24. ^ Ramanathan, Ajay (27 March 2024). "P2P lenders focus on fixed tenure products after RBI rap". Financialexpress. Retrieved 11 October 2024.
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