Stashfin secures $100 million debt funding for neobanking platform

• ByStartupStory     |    March 25, 2023

Stashfin secures $100M debt funding from InnoVen Capital and Trifecta Capital along with other local investors, marking one of the biggest debt rounds in recent years. The funding comes almost a year after the company’s $270M Series C round led by Uncorrelated Ventures, Fasanara Capital, and Abstract Ventures. Stashfin’s total funding from equity and debt now stands at approximately $430M, and its latest funding round values the neobanking platform at $730M.

Stashfin, a neobanking platform, recently announced that it has secured $100 million in debt funding from InnoVen Capital, Trifecta Capital, and a group of other investors. The startup, which provides financial products and services to millions of borrowers with limited credit footprints, plans to utilise the funds to optimise its portfolio for potential securitisation, enhance customer experience, and further improve financial inclusion.

 

Stashfin, a fintech platform in India that provides financial products and services to borrowers with limited credit footprints, has experienced a range of positive developments. These include ICRA upgrading the rating of its group company Akara Capital Advisors Private Limited to BBB (Stable)/A3+, and the recent issuance of its first debt issue to retail investors on the Wint Wealth credit platform. In FY22, Stashfin’s Indian entity saw a 5.7X increase in operating revenue to Rs 47.5 crore compared to Rs 8.3 crore in FY21, but also reported a 39% rise in losses to Rs 18.64 crore from Rs 13.4 crore in FY21, according to its standalone financial statement.

Neo banking platforms in India, including Open, Fi, and Jupiter, have had difficulty generating significant revenue despite raising millions of dollars between 2020 and 2022, according to Entrackr’s analysis of their annual financial statements. The report found that even revenues of Rs 50 crore from operations are unlikely for these companies. For instance, Open’s operating revenue increased by over 7 times to Rs 40.9 crore in FY22, while Fi (formerly epiFi) and Jupiter recorded Rs 21 crore and Rs 42 lakh in operating revenue, respectively.

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