Key Takeaways
- Per Annum allegedly offers 14-15% P2P returns and 30-40% fractional real estate gains despite RBI's 2024 ban on assured return promises
- Transactree's operating revenue fell 35% to ₹275 Cr in FY25; its ₹10,000 Cr AUM claim conflicts with just ₹4.5 Cr in investor payouts
- Turtlemint's IPO closed 1.2X subscribed at ₹152 per share, valuing the insurtech at ₹4,513 Cr ahead of June 29 listing
Transactree Technologies, the parent company of P2P lending platform Lendbox, is facing fresh scrutiny over its investment arm Per Annum. Investors allege the platform continues to pitch high-yield products with returns of 14-15% on P2P lending and up to 40% on fractional real estate, despite the Reserve Bank of India's 2024 crackdown on such practices.
The complaints arrive as Transactree's financials deteriorate sharply. Operating revenue dropped 35% year-on-year to ₹275 crore in FY25, net profit shrank to ₹4.8 crore, and operating cash flows turned deeply negative.
What are investors saying about Per Annum's sales pitch?
According to Inc42's investigation, investors and prospective customers report that Per Annum sales representatives promote P2P products with returns of 14-15%, alongside fractional real estate opportunities branded as "Estates" that could deliver 30-40% gains. Sales personnel allegedly assured prospects that borrower spreads would cushion any losses.
This directly contradicts the RBI's August 2024 guidelines, which explicitly prohibited P2P platforms from offering credit guarantees, promising assured returns, or structuring products to mimic bank deposits. The central bank introduced these restrictions after observing platforms blur the line between marketplace lending and deposit-taking institutions.
Per Annum has also launched "P2P Edge," a lending product marketed as delivering up to 15% returns over six months. Investors claim the underlying promise remains unchanged even as the product names evolve.
Does the ₹10,000 crore AUM claim hold up?
Lendbox claims to manage ₹10,000 crore in assets under management. The number appears implausible when compared against industry benchmarks and the company's own financials.
Rival platform LenDenClub says it controls up to 80% of a total industry book worth ₹3,000 crore. If accurate, that would leave a fraction of the market for all other players combined, including Lendbox.
More telling: Transactree paid out just ₹4.5 crore in investor interest during FY25. For a platform claiming ₹10,000 crore AUM generating 14-15% annual returns, the interest payout should run into hundreds of crores, not single digits. The math doesn't reconcile.
Transactree maintains it remains compliant with RBI norms and does not offer risk-sharing or guaranteed returns. The gap between that statement and investor complaints is what regulators may eventually need to examine.
Turtlemint IPO closes 1.2X subscribed
In better news for fintech public markets, insurtech platform Turtlemint's IPO closed 1.2X subscribed on its final day. The offering received bids for 3.95 crore shares against 3.29 crore shares available.
Qualified institutional buyers drove most of the demand, subscribing their portion 1.59X. Retail investors subscribed 1.07X. Non-institutional investors remained cautious, with their segment just 52% subscribed.
The IPO comprised a fresh issue worth ₹660.7 crore and an offer for sale of up to 1.46 crore shares from promoters and existing investors. At the upper price band of ₹152 per share, Turtlemint carries a valuation of ₹4,513 crore. Shares will list on June 29.
Square Yards crosses $1 billion valuation
Proptech startup Square Yards has raised ₹900 crore in a mix of equity and debt, led by EAAA Alternatives, crossing the $1 billion valuation threshold. India now counts 131 unicorns.
Square Yards isn't done raising. The company plans to bring in another $50-60 million over the next quarter, targeting a $1.6 billion valuation. An eventual IPO worth ₹2,000 crore remains on the roadmap.
Founded in 2014, Square Yards offers end-to-end real estate services from property search and financing to interiors and management. It closed FY26 with revenue of ₹2,086 crore and EBITDA of ₹176 crore, having raised $208 million to date.
Honasa enters nutraceuticals with Fluence Pharma deal
Mamaearth parent Honasa Consumer will acquire 58% of nutraceuticals company Fluence Pharma for ₹135 crore. The D2C giant plans to purchase the remaining 42% through secondary transactions over seven years.
Fluence Pharma manufactures skin and hair health supplements sold through a network of 3,000 dermatologists and trichologists. Its FY25 turnover stood at ₹37.2 crore, up 3% year-on-year. Honasa will set up a new subsidiary to build out this vertical.
Mitigata raises $15 million for cybersecurity expansion
Cybersecurity startup Mitigata has closed a ₹141 crore Series B round led by Bessemer Venture Partners. The 2023-founded company offers a full-stack cyber resilience platform and plans to use the funds for global expansion, AI upgrades, scaling its domestic security operations center, and doubling headcount.
Logicity's Take
The Per Annum situation reveals how P2P lending's structural problem persists: platforms need retail capital to survive, and high return promises remain the easiest way to attract it. The RBI's 2024 guidelines closed obvious loopholes, but enforcement remains reactive rather than preventive. Until regulators audit actual sales conversations and marketing materials, not just compliance documents, the gap between stated norms and ground-level practices will widen. Turtlemint's modest subscription, meanwhile, signals that public market appetite for fintech IPOs has normalized. That's healthy.
Frequently Asked Questions
What did the RBI's 2024 P2P lending guidelines prohibit?
The RBI's August 2024 guidelines banned P2P platforms from offering credit guarantees, promising assured returns, and structuring products that resemble bank deposits. Platforms must operate purely as intermediaries between lenders and borrowers.
How much AUM does Lendbox claim to manage?
Lendbox claims ₹10,000 crore in assets under management, though this figure appears inconsistent with its FY25 investor interest payout of just ₹4.5 crore and competitor data suggesting the total industry book is around ₹3,000 crore.
When will Turtlemint shares list on stock exchanges?
Turtlemint shares will list on June 29, 2026, at a valuation of ₹4,513 crore based on the upper price band of ₹152 per share.
How many unicorns does India have after Square Yards' funding?
India now has 131 unicorns after Square Yards crossed the $1 billion valuation mark with its ₹900 crore funding round led by EAAA Alternatives.
What is Fluence Pharma and why did Honasa acquire it?
Fluence Pharma manufactures skin and hair health supplements sold through 3,000 dermatologists and trichologists. Honasa acquired it to enter the nutraceuticals market as a new growth vertical beyond its Mamaearth personal care brand.
Another major Indian startup making strategic acquisitions to expand capabilities
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Source: Inc42 Media / Team Inc42
Huma Shazia
Senior AI & Tech Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
