Biography of Bhavin Patel: Founder & CEO of LenDenClub- Entrepreneur

 Biography of Bhavin Patel: Founder & CEO of LenDenClub- Entrepreneur

Biography of Bhavin Patel:

In 2015, Bhavin Patel embarked on a mission to revolutionize lending in India by founding LenDenClub, a prominent Peer-to-Peer (P2P) lending platform. With over ten years of experience in the financial sector, Bhavin was driven by a vision of financial inclusion. His goal was to address the needs of individuals across the country, including those in remote areas, and to offer a platform for alternative investments that could yield high returns.

The Early Success

Under Bhavin Patel's leadership, LenDenClub rapidly gained traction. Within just two years of its launch, the platform expanded its user base to include participants from 20 states across India. Bhavin, who earned his Postgraduate Diploma in Marketing and Finance from Kirloskar Institute of Advanced Management Studies, leveraged his academic background and professional experience to propel the company's success.

The Founder's Background

Bhavin Patel’s journey began with a strong educational foundation. He completed his Bachelor of Engineering in Electronics and Communication from South Gujarat University before pursuing his PGDM at Kirloskar Institute. His diverse career included roles such as AVP of Finance at Being Human Clothing, Senior Manager at Electronica Finance Limited, and Co-Founder of SPAN Analytics Pvt Ltd, which laid the groundwork for his future ventures.

The Eureka Moment

The idea for LenDenClub came from a personal experience. Bhavin noticed a gap in the market when a colleague was denied a small personal loan due to earning less than Rs 28,000 a month. Realizing that many Indians faced similar challenges, Bhavin decided to create a lending platform that would cater to people needing smaller loans, leading to the birth of LenDenClub in September 2014.

Overcoming Early Challenges

In the early stages, gaining trust was a significant challenge. People were hesitant to adopt a new digital lending model. To address this, Bhavin and his team engaged in direct outreach to educate potential users about digital lending. Their efforts paid off when they signed their first five clients simultaneously, a milestone that significantly boosted their morale and credibility.

Building Customer Trust

One of the biggest hurdles was earning customer trust, particularly when digital lending was not yet regulated by the Reserve Bank of India (RBI). Bhavin’s team worked diligently to reassure customers. Their persistence paid off, as once customers experienced the ease of obtaining loans, they returned and spread the word, helping to grow the business largely through word-of-mouth.

Biography of Bhavin Patel: Founder & CEO of LenDenClub- Entrepreneur/ Startup/SUccess story of Bhavin Patel/LenDenClub/P2P lending solutions/Age/Net wo

Current Achievements

Today, LenDenClub processes around 50,000 borrower applications monthly from five major cities. The platform has been certified by the RBI, which has helped attract more lenders and expand the range of loan products available. Innovations in their offerings now include loans for home renovations and family functions, with plans for further product additions.

P2P Lending’s Rise

The Peer-to-Peer (P2P) lending market in India has been growing rapidly, with investors seeing average returns of 13%. This growth is partly due to traditional investment options failing to meet the high return expectations of investors. As a result, platforms like LenDenClub are increasingly popular as they offer a compelling alternative with substantial returns.

Pandemic Growth

Despite the challenges posed by the COVID-19 pandemic, LenDenClub saw impressive growth. By the end of FY21, the platform experienced a remarkable increase of 900% in investor registrations and 166% in borrower applications compared to the previous year. Their advanced credit screening mechanisms helped reduce non-performing assets (NPAs) by 32%, demonstrating their resilience and adaptability.

Navigating Crisis

The first wave of COVID-19 was particularly challenging, but LenDenClub managed to navigate through it successfully. With improved technology and credit algorithms, they were better prepared for subsequent waves. While defaults are a natural part of lending, the company’s strategic approach helped minimize their impact and maintain investor returns.

The Appeal of P2P Lending

P2P lending has emerged as a viable alternative asset class, offering diversification and higher returns compared to traditional investment options like fixed deposits and mutual funds. The growth in digital adoption has made it easier for investors to explore and invest in P2P lending platforms, further fueling their popularity.

Investor Profile

The typical investor on LenDenClub is between 31 and 45 years old, with a preference for digital financial transactions. These investors, ranging from salaried professionals to mid-level managers, invest amounts varying from Rs 500 to Rs 40,00,000. On average, they have achieved a portfolio return of approximately 13% over the past year.

Benefits of P2P Lending

For many in India, especially in tier II, III, and rural areas, accessing credit can be challenging. P2P lending offers a more accessible and convenient alternative to traditional options like gold loans, which often require substantial collateral and come with high interest rates. With P2P lending, individuals can apply for loans from their smartphones, making it a more inclusive solution.

Service Charges

LenDenClub’s business model includes charging borrowers a processing fee of 2% to 5% and investors a 2% fee on their earned interest. These fees are performance-based, meaning the company earns more when investors achieve higher returns and less when returns are lower, aligning their interests with those of their users.

A Leading Alternative

Since its inception, LenDenClub has become India’s largest alternate investment platform. By offering a dynamic and innovative approach to lending and investing, the platform continues to help users diversify their investment portfolios beyond traditional options, contributing to its growing prominence in the financial landscape.

Timeline for Bhavin Patel and LenDenClub

2014: Bhavin Patel identified a gap in the market for personal loans, leading to the idea for LenDenClub.

September 2014: Founded LenDenClub to offer P2P lending solutions in India.

2015: Officially launched LenDenClub and began operations.

2017: Expanded user base to participants from 20 states across India.

2020: LenDenClub experienced a 900% increase in investor registrations and a 166% increase in borrower applications during COVID-19.

2021: The platform processed around 50,000 borrower applications monthly and was certified by the RBI.

Present: LenDenClub is India's largest alternate investment platform, continuing to grow and innovate.

 Biography of Bhavin Patel: Founder & CEO of LenDenClub- Entrepreneur/ Startup/SUccess story of Bhavin Patel/LenDenClub/P2P lending solutions/Age/Net wo