As fintech lenders chase secured credit options, VCs up their bets

The slowdown in the unsecured consumer credit market is resulting in an increase in investor interest in secured lending platforms, a sector dominated by traditional financiers till recently.

Over the past one year, venture funds which typically fund tech-first companies have been betting on home financing startups, branch-led secured lenders offering products such as loans against property (LAP), loans against securities like mutual funds, vehicle lending companies and asset-based lenders.