FincFriends Secures $7.8 Million Funding Round Led by InCred Finance and Grow Money Capital

• ByStartupStory     |    April 15, 2024

FincFriends, the captive non-banking financial company (NBFC) under RupeeRedee, has successfully raised $7.8 million in its latest funding round, signaling a robust investor confidence in its digital lending platform. The investment comprises a blend of equity, external commercial borrowing (ECB), and debt financing, with prominent participation from key stakeholders including InCred Finance and Grow Money Capital.

Of the total amount raised, $2 million was secured in equity funding, $2.8 million through ECB from existing shareholder APV Management Pte Ltd, and the remaining $3 million through debt financing facilitated by InCred Finance and Grow Money Capital. This latest capital injection adds to FincFriends’ impressive fundraising record, with a total of $13.6 million in equity, $3.5 million in ECB, and $4.3 million in debt raised since its inception in 2017.

Roman Aznabaev, CEO of RupeeRedee, expressed the company’s strategic vision following the funding round, emphasizing their commitment to expanding credit offerings and enhancing value for customers and stakeholders. “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,” Aznabaev stated.

Mohit Gandhi, Head of Financial Institution Lending at InCred Finance, highlighted the significance of the collaboration with FincFriends in advancing financial inclusion and empowering underserved communities in India. “InCred’s collaboration with FincFriends underscores our dedication to offering customized liquidity solutions for businesses, fostering financial inclusion, and empowering communities,” Gandhi commented.

The infusion of capital comes at a pivotal time for FincFriends and the broader lending landscape in India. The Reserve Bank of India’s (RBI) recent measures, including an increase in risk weight on personal loans in 2023, have contributed to a slowdown in the growth of unsecured personal loans. According to RBI data, the year-on-year growth in banks’ unsecured personal loans moderated to 23.1% in February from 24.4% in January and 27.6% in December 2023.

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