Alternative Investment Opportunities: The End of Search for a passive income

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By Bhuvan Rustagi – COO & Co-Founder, Lendbox

The search for passive income that is relatively risk-free is always attractive to investors sitting on cash and not sure where to invest. After a point, market-related investments become difficult to time and if you get your entry point wrong, you may have to wait a long time to get your prices again. Similar logic applies to commodities or real estate. Prolonged or excessive exposure to assets in public markets also has disadvantages.

On the other hand, there are several non-market-related investment avenues that are not usually accessible to retail investors. Lendbox steps in to make these investment opportunities available to them. These investments generate fixed incomes ranging from 10%-14% in the ultra low-risk category to 40% in the high-risk category.

Lendbox partners with premium fintech service providers and BNPL players to offer products in the ultra low-risk category like settlement financing, invoice discounting, and digital card financing. Sufficient risk mitigants are in place by both Lendbox and their partners in order to generate stable returns of 10-14%.

In the medium yield category that is partially backed by the partners, Lendbox offers opportunities like education finance, consumer durable finance, personal finance, gig economy finance, group, and microfinance. These generate incomes in the range of 14-20%.

In the high risk, high returns unsecured category that generates returns from 20-40%, Lendbox offers investment opportunities like payday finance, salary advance credit, and personal finance.

Lendbox offers unique non-market investment opportunities to retail investors helping them to earn an assured passive income on their investments. Lendbox is an RBI licensed NBFC- P2P platform with a goal to provide retail investors an affordable and accessible investment opportunity via fractionalization of assets. They offer monthly interest earnings with an option to cash out before maturity. They provide a diversified basket that helps to mitigate risk and maximise returns.

The USP of Lendbox is that they focus on providing high-quality fixed income products to investors which creates the ideal passive income on funds that would have otherwise remained idle. The investment amount can be as small as Rs 500 which makes the products very accessible and attractive.

Lendbox was founded in 2015 by seasoned investment professionals Ekmmeet Singh and Bhuvan Rustagi along with tech professional Jatin Malwal and received regulatory compliance from RBI in 2018. They have built India’s largest stack of debt investments for every risk appetite. They have a core team of over 70 finance, banking, and tech professionals who help them provide a 100% digital and seamless experience to their users. They not only survived but thrived during the Covid 19 pandemic when their monthly investment transactions grew 7x to touch 35000. Today they have over 50,000 Lendbox investors with over $40 million of invested funds. The monthly investment on their platform is over $2.5 million with an average return of 14.1% per annum.

Lendbox has successfully fractionalised and democratised the investment in the debt asset class by offering a very interesting avenue to retail investors for the generation of passive income.

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