The peer-to-peer lending platform finds itself in a tricky position amid the fintech’s internal issues, the RBI’s intensified scrutiny of P2P lenders and the risky nature of the business.
In May, R, a finance professional with nearly two decades of experience, decided to gradually pull out his funds of over Rs 5 lakh invested in BharatPe’s peer-to-peer lending platform 12% Club. His reasons? One, the public—and often ugly—tussle between BharatPe and its former chief executive Ashneer Grover was making him jittery. And two, his funds were no longer accruing a daily interest of 12%.
R’s concerns peaked on 12 May, when Grover posted on LinkedIn that “BharatPe will be shut down/sold in fire sale overnight like [Silicon Valley Bank].” In the same post, he advised against investing funds with …
Ashwin covered fintech and banking at The Morning Context. Previously, he was at The Economic Times, where he worked across the finance, tech and startup verticals, breaking stories related to India’s banking system, startups in the new economy, digital payments, insurance and cryptocurrencies.
Writer
ashwin@mailtmc.com
Delhi