The major investors, InCred Finance and Grow Money Capital, injected $3 million in debt capital into the NBFC, while APV Management poured the rest. The new funding will be used to boost the startup’s growth and speed the expansion of its product line. FincFriends, founded in 2017, is the captive NBFC arm of RupeeRedee that provides quick short-term personal digital loans.
FincFriends, the NBFC arm of digital lending platform RupeeRedee, has received $7.8 million in a strategic round led by InCred Finance and Grow Money Capital.
While the principal investors contributed $3 million in debt finance, the remaining amount was raised in equity ($2 million) and debt ($2.8 million) from current investor APV Management.
The new profits will be used to support the startup’s growth and product portfolio. A portion of the cash will also be used to expand operations in emerging regions, increase the client base, and “amplify” the NBFC’s credit portfolio.
“… As we focus on expanding our credit offerings, we are looking forward to leveraging this opportunity to create high value for our customers and stakeholders alike,” Roman Aznabaev, CEO of RupeeRedee Mohit Gandhi, head of financial institution lending at InCred Finance, commented, “… Through this partnership, we actively support FincFriends’ mission of providing socially responsible funding to underserved populations in India.” Together, we are dedicated to creating a more financially inclusive future.
FincFriends, founded in 2017, is a non-bank finance company (NBFC) that provides financing solutions and loans to customers digitally. It is RupeeRedee’s captive arm, offering quick, short-term personal digital loans to underserved people.
Last year, Cyprus-based Digital Finance International (DFI) provided the NBFC with $3.5 million in equity capital.
The fundraising round comes as the Reserve Bank of India (RBI) tightens its grip over the country’s rapidly expanding digital lending environment. Last December, Finance Minister Nirmala Sitharaman informed Parliament that Google delisted over 2,500 fraudulent digital loan apps from the Play Store between April 2021 and July 2022.
Despite this, the digital lending industry remains an appealing prospect for entrepreneurs and investors alike. Ashneer Grover recently announced the launch of ZeroPe, a new healthcare-focused lending platform that would provide loans to users for medical crises.
According to Inc42’s State of Indian Fintech Report Q4 2023, homegrown lending tech businesses raised $141 million in eight transactions in Q4 2023. By 2030, the category is expected to control the vast majority ($1.3 trillion or more) of the $2.1 trillion Indian fintech industry opportunity.
