Digital lending platform RupeeRedee’s captive NBFC FincFriends raises $7.8M in equity and debt

Digital lending platform RupeeRedee’s captive non-banking financial company (NBFC) FincFriends has raised $7.8 million in funding. The round included $2 million in equity, $2.8 million in external commercial borrowings (ECB), and $3 million in debt from InCred Finance and Grow Money Capital.

Who are the investors?

The funding components were provided by several key players in the financial sector. Specifically, InCred Finance and Grow Money Capital provided the debt portion, while equity and ECB were secured from existing shareholders, including APV Management Pte Ltd.

The strategic funding aims to bolster FincFriends' mission to deliver socially responsible funding solutions to underserved populations in India.

What is the purpose of fundraising?

The company plans to use the raised capital for expansion and operational scaling. Roman Aznabaev, CEO of RupeeRedee, said, "We’re elated to secure significant equity, ECB, and debt funding, which demonstrates the confidence and trust that our shareholders have showcased in our vision and commitment to build a financially inclusive lending ecosystem. 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"

The funds will enable FincFriends to enhance their product offerings, with plans to increase the available loan amounts up to Rs 150,000 and expand their customer base.

How will this impact the company's growth?

With the current funding, FincFriends plans to substantially grow its operations. This includes increasing the company’s team size from around 140 employees to an additional 70-100 by the next financial year, according to vice president Ajay Chaurasia.

At present, The company offers digital loans ranging from Rs 2000 to Rs 30,000 with an average ticket size of Rs 11,000, with the addition funding the company will add products with loans up to Rs 1,50,000.

What did InCred Finance say about the funding?

"InCred's collaboration with FincFriends underscores our dedication to offering customized liquidity solutions for businesses, fostering financial inclusion, and empowering communities. Through this partnership, we actively support FincFriends' mission of delivering socially responsible funding to underserved populations in India. Together, we are committed to shaping a more financially inclusive future," said Mohit Gandhi, Head - Financial Institution Lending - InCred Finance.