Online personal loan app RupeeRedee’s captive non-banking financial company (NBFC) FincFriends has raised equity funding of $3.5 million from its existing shareholders including Cyprus-headquartered digital lending company Digital Finance International (DFI). The new funding brings the total amount raised by FincFriends to $11.6 million in equity including the last round in September 2022. The company said its shareholders will also invest an additional $10 million by the end of the current financial year.
The investment will be deployed towards the company’s growth by scaling up operations and expanding its product offerings to push financial inclusion in emerging markets as the company aims to disburse loans worth Rs 1,000 crores in FY24.
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“We are delighted to secure this significant equity funding, which reflects the confidence of our shareholders in our vision and the positive impact we are making in the lives of underserved consumers,” said Aznabaev Roman, India Country Head of RupeeRedee. “This investment will empower us to scale our operations, expand our product offerings, and deepen our commitment to financial inclusion in emerging markets. We are excited about the opportunities ahead and look forward to creating even greater value for our customers and stakeholders.”
The investment round also aligns with RupeeRedee’s strategic plans to augment the assets under management (AUM) of the business. By increasing revenue streams, RupeeRedee said it will be able to broaden its range of products and appeal to a wider customer base. The funding will also allow the company to allocate funds in enhancing its customer acquisition strategies to expand its customer base across India, it said. Incepted in 2018, RupeeRedee and FincFriends offer instant short-term personal digital loans to customers.
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According to the statistics platform Statista, digital lending is one of India’s fastest-growing fintech segments. It grew exponentially from $9 billion in 2012 to nearly $150 billion dollars in 2020 and is expected to reach a value of around $350 billion dollars by 2023. This business was mainly covered by fintech startups and NBFCs.