Gujarat witnesses 86% rise in P2P investments: LenDenClub Data

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Investment in Peer-to-Peer (P2P) Lending has witnessed a rise of 86% in Gujarat as per consumer analysis of LenDenClub, India’s largest P2P lending enterprise as compared with the previous year. LenDenClub analysed its data, drawing insights into the investment patterns and behaviours of investors in the state of Gujarat. The analysis was conducted on its active overall investor base of over 06 lakh for nine months starting from January 2020 to December 2020 compared to the previous year of the same period.  

According to the report, within Gujarat, Ahmedabad, the company witnessed a rise of new investors and investments by 11% and 21%, respectively. Further, it also highlighted, more than 20% of investments on its platform came in from the city of Ahmedabad. 

Close to 35% of the investors investing in P2P lending were primarily tech-savvy younger population, falling in the age bracket of 31 to 40 years of age. It is essentially the salaried class, followed by businessmen/entrepreneurs who have opted for the investments in the asset class. Investment in the P2P space was mainly dominated by males with 61%, whereas female investors constituted 39%. It showcases the awareness among the women investors that investment in P2P lending is on the rise.  

Sharing his comments, Bhavin Patel, Founder & CEO, LenDenClub, said, “We have seen huge growth among the young investors of Gujarat as they want inflation-beating investment options. The asset category is rapidly growing as an alternate investment option for technology savvy people to invest, and it is the most reasonable alternative for FD or debt mutual funds. We at LenDenClub expect the current investor base hailing from Ahmedabad to grow by 30% by the end of FY22. Similar to mutual funds, it offers lenders to diversify their portfolios in various borrowing classifications. In our data, we have also seen users who have experienced return frequently investing for longer. Additionally, we also see interest coming from other state districts like Surat, Vadodara, Gandhinagar, among others.” 

Investments in the range of Rs. 500 to Rs. 5000 were the most popular category highlighted in the report. People who have diversified their investments in different borrower categories have reduced the risk and earned an interest in the range of 12%-15%. The ideal investment, as suggested by the platform, remains ₹25,000 to ₹50,000. 

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