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Stashfin raises $270 million in a mix of debt and equity, now valued at about $700-800 million

The fundraise comes at a time when investors are cautious amidst the challenging macro environment

June 21, 2022 / 06:42 PM IST
(Representative image)

(Representative image)

Singapore-based fintech startup Stashfin has raised $270 million in its Series C round led by investors including Uncorrelated Ventures, Fasanara Capital and Abstract Ventures.

The round which was a mix of debt and equity brings the platform closer to the unicorn tag, valuing it at $700-800 million despite an overall slowdown in funding as investors turned cautious amid rising inflation and interest rates and falling stock markets.

Existing investors including Altara Ventures, Kravis Investment Partners, and Snow Leopard also participated in the round.

While the company is based out of Singapore, it currently only caters to the Indian market. Stashfin has said that it will use the funds to expand its footprint in Southeast and South Asia and upgrade its technology for new products.

Founded by Tushar Aggarwal in 2016, Stashfin extends credit line-linked Visa cards, that are issued by its partner bank SBM Bank India, to customers with loans of up to Rs 5 lakh.

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In the past twelve months, Stashfin saw 10x growth in its monthly business and is currently nearing an Annualised Revenue Run Rate (ARR) of $100 million, the company said.

The company has registered nearly ten million customers on its platform since inception and is looking at a 4-5x growth this year with ARR expected to grow to $400 million over the next 12-18 months.

However, Stashfin's business model will be impacted after a clarification issued by the RBI to fintechs warned that credit lines cannot be loaded into Prepaid Payment Instruments (PPIs) like prepaid cards and wallets.

Another change in norms by the RBI also limits the role of fintechs like Stashfin to marketing and distribution of cards and bars them from accessing data on customer transactions.

Commenting on the fundraise, Stashfin founder and CEO Aggarwal said, "The fundraise is a key milestone in this challenging macro environment. Stashfin began with the purpose to serve the underserved and unserved segments of our society, and it’s heartening to see this manifesting in rapid business growth impacting millions of our customers’ lives."

"We are now at the cusp of transforming into a compound startup, offering multiple financial products for consumers with a wide spectrum of credit risks."

Stashfin's cards allow users to avail instant credit and transact across channels, including ATM withdrawals, virtual and physical card with exclusive rewards and offers. The company recently launched  #LiveBoundless – a credit line card for women.

The company had last raised $40 million as part of its Series B round in April 2021.
Moneycontrol News
first published: Jun 21, 2022 06:42 pm
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