NBFC firm True Balance raises $30M debt from Indian and South Korean investors

True Credits – an NBFC and an affiliate of an RBI-authorised lending company True Balance, today announced it has raised $30 million (about Rs 223 crore) in a debt financing round led by both Indian and South Korean investors.

True Balance is a financing platform operated by Balancehero India Pvt. Ltd, a wholly-owned subsidiary of Balancehero Co Ltd. Korea.

The third round of investment has shown participation from a mix of new and existing investors namely, Northern Arc, Arthmate, Shine Star, E-Clear and Hinduja, and other Korean investors to support the company’s growth in India.

According to the company's statement, The Seoul and Gurugram-headquartered fintech has disbursed loans over Rs 600 crore in this calendar year through its RBI licensed NBFC subsidiary True Credits Private Limited.

True Balance's next-generation financial platform claims to make it a one-stop shop for all financial transactions and lending solutions. The fintech firm claims to have witnessed over 10 lakh transactions per month on its platform for various financial services, loans being the primary contributor.

With the support of RBI license and PPI license, True Balance has aggressively expanded its portfolio to low-income citizenry making ‘finance available for all’. The firm's loan book has grown at 2,500% in CY2021 for small-ticket size products — the key product focused towards new-to-credit users, Level Up Loan.

The seven-year-old firm intends to cater to customers within the monthly income bracket of Rs 10,000 to Rs 40,000. True Balance disburses about 7,000 loans a day, with ticket sizes starting as low as Rs 1,000 and going up to Rs 50,000.

Speaking on the development, Vishal Bhatia, Chief Financial Officer, True Balance said:

“Our resolve to make finance available for all, gets strengthened with each round of debt fund we raise. The pandemic has brought out the major gap which highlights how the traditional banking system has not been able to fulfill the credit needs of many Indian users. True Balance aims to be the one-stop-solution and financial partner for the new to credit users.”

Prior to this round, True Balance had raised $15 million in a debt financing round from Pace Group and E-Clear. In March 2021, It had raised $10 million in debt led by Northern Arc Capital and other investors.

Following the current round, True Balance had raised $55 million in debt financing in FY-2021.

True Balance has raised funds from SoftBank Ventures Asia, Line Ventures, Naver, Shinhan Bank, TS Investment, Bon Angels, Mega Investment, IMM, Korea Development Bank, Capstone Partners, and Intervest.

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