Digital lending platform RupeeRedee’s captive non-banking financial company (NBFC) FincFriends has raised $7.8 million in its latest funding round. While $2 million was raised in equity funding, another $2.8 million was raised in the form of ECB (external commercial borrowing) from the company’s existing shareholders APV Management Pte Ltd. The remaining $3 million was raised in debt from InCred Finance and Grow Money Capital. The total amount raised by the company last financial year stands at $11.6 million in equity and $1.3 million in debt, the company said in a statement.
Founded in 2017, FincFriends, which enables personal loans up to Rs 30,000 through its digital lending platform, has so far raised $13.6 million in equity, $3.5 million in ECB and $4.3 Million in debt.
The company said it will deploy capital towards increasing its customer base and amplifying its 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,” said Roman Aznabaev, CEO, RupeeRedee.
“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.
Importantly, the growth in unsecured personal loans has slowed following the Reserve Bank of India’s (RBI) increase in risk weight on personal loans in 2023. According to the RBI data, the year-on-year growth in banks’ unsecured personal loans had moderated to 23.1 per cent in February from 24.4 per cent in January and 27.6 per cent in December 2023.
Among personal loans, the growth in consumer durable loans also slowed to 14.6 per cent in February from 20 per cent in December and credit card outstanding declined to 31 per cent in February from 40 per cent in December.