Fibe (erstwhile EarlySalary) is planning to utilise the latest $90-million funding to increase its assets under management and enhance product offering.
“With this addition of capital, our net worth goes up to around Rs 1,600 crore. When you have more capital available, it causes an improvement in your rating. As our rating improves, we hope to get access to more debt instruments,” Akshay Mehrotra, co-founder and chief executive officer, said.
The company intends to increase its assets under management to over Rs 8,000 crore in the next two years, from Rs 4,300 crore as on March 31.
While the lender traditionally operates at an average loan tenure of five months, this has risen to eight months in the last one year. The average ticket size has jumped 60% to Rs 67,000-68,000.
Earlier this month, the company raised $90 million in a Series E round, led by TR Capital, Trifecta Capital and Amara Partners. Its existing investors – TPG Rise Fund, Norwest Venture Partners, Eight Roads Ventures and Chiratae Ventures – also participated in the round which included both primary and secondary transactions.
Of the total funding, around $70 million was primary investment and the remaining $20 million was for secondary shares. In a secondary share sale, money goes to the selling shareholder, and not to the company. While it did not disclose the post-money valuation, Fibe was valued at around $270 million during the previous fundraise in 2022.
Revenue rose to nearly Rs 1,000 crore in 2023-24, from Rs 429 crore in 2022-23. The bottomline has tripled to around Rs 100 crore.
The company has clocked a disbursal run rate of around Rs 900-1,000 crore on a monthly basis.
Fibe operates in the unsecured personal loan segment, where it offers healthcare loans, edtech loans, insurance financing and school fee financing, among others.
“As we have more capital, we have opened up markets to cater to more customers. As we want to retain customers, we will keep increasing the tenure limits to manage customer experience and expectations,” Mehrotra said.