The new-age digital lending platform aims to allocate the funds in building books and business scalability.
FincFriends Pvt.Ltd Is NBFC has raised $1 Mn in debt funding from a leading lending NBFC firm - Eclear Leasing & Finance Pvt. Ltd. The company aims to use the debt sanctioned by lenders in tranches for business expansion, growth and effective cashflows.FincFriends has its own App and lending Platform RupeeRedee which is used for lending to customers.Arjun Passi’s, VP – Strategy and Business Development, Spearheading the Fundraise initiative for the NBFC said “As a strategic decision we have decided to raise more funds through debt to build our books. A “Good Debt” is the need now as equity is the most expensive form of funding. We want to build more credibility in the market by servicing such debt successfully. Good credit history will not only help us get lower ROI debts in the future but also help us create a positive reputation enabling better valuations and market perception”
FincFriends aims to use the debt to build in the loan book further and replace the need for equity infusion at the present stage of business.
On behalf of Eclear Leasing & Finance Pvt. Ltd, Mr. Manoj Bansal, Managing Director said: We are happy to support FincFriendsPvt. ltd in its endeavour in growing its current business. Post doing in-depth due diligence, we were convinced that the organization has a clear vision with a well-rounded team. It has created a strong foundation across key areas such as Risk, customer satisfaction, product, and collections.
With the digitization of the lending process, fintech companies are emphasizing building robust digital infrastructure to identify and manage risks. FincFriendsPvt.Ltd’sRupeeRedee leverages state-of-the-art technologies backed by data sciences to make lending safe, quick and hassle-free for underserved customers. In a short span of time, the company was able to break even in the first year of operations and run a profitable business operation with considerable NetWorth.
Considering the consistency in business growth, the company raised funds from Tier One capital and allocated the funds to build books. It has raised $6 mn from the parent company – DigitalFinance International (DFI) part of the Finstar Financial group.As part of the business plans, the company is aggressively looking to close a funding deal of $5 mn in 2022.
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