Singapore loan brokerage platform company Lendela has raised SG$1.3 million (around US$943,000) in a seed financing round led by early-stage venture capital funds Cocoon Capital and IMO Ventures, the company said Wednesday.
Founded earlier this year as part of the fintech group Zentro Finmarket, Lendela is still in the beta testing phase in Singapore and Malaysia, slated for a full feature release later this year. Its online platform compares interest rates for personal loans from a number of banks.
Zentro Finmarket has been operating a similar product in South America and Scandinavia as well, it said.
The company will use the new funds to launch its product in Singapore and Malaysia, market it to users in those markets, and hire more talent in those locations to support its operations, said a spokesperson to KrASIA. It has plans to launch its offerings in other Southeast Asian markets “in due course”.
Users can apply for loans by filling out a single application form. Lendela then presents the user with various loan offers that fit their needs. Users can then compare the terms and pick the offer via the website.
Will Klippgen, Managing Partner, Cocoon Capital, has joined Lendela’s board of directors, the firm said.
In Singapore, other similar products that have already gotten traction in the market include GoBear, SingSaver, and iMoney.
— The core differentiator between Lendela and other products in the market, according to a spokesperson, is that the former provides users with a “seamless experience” by only having them fill out one single application. Some websites might get users to apply individually for each loan, for example.
— Such comparison websites may be able to help consumers save money by finding a loan that is most suited to them with the lowest interest rates. Major banks in Singapore are seeing the value in offering personal loans, and some like DBS and POSB have lowered their interest rates in a bid to capture more market share, according to a report.
Editor: Ben Jiang