Pune-based digital lending platform Fibe (formerly EarlySalary) plans to raise around Rs 3,000 crore in debt in the financial year 2024-25, its co-founder Akshay Mehrotra said.
“We want to build our lending franchise, which is raising more debt at the backend. So we will try to raise at least Rs 3,000 crore from the market as debt. We don’t want to grow our topline numbers that much, we want to control it. Now we want to build an India reach,” Mehrotra said.
The company had earlier this month raised $90 million in a Series E funding round led by TR Capital, Trifecta and Amara Capital. Existing investors TPG Rise Fund, Norwest Venture Partners, Eight Roads Ventures and Chiratae Ventures also participated in the round, including primary and secondary transactions. TR Capital invested about $32.5 million, as confirmed by the firm, followed by TPG's Rise Fund with $16 million and Kabira Holdings ($15 million).
The fintech firm, in August 2022, had raised $110 million in a Series D round at a valuation of $350 million.
Till now, Fibe claims to have disbursed over 6 million loans worth Rs 20,000 crore in partnership with banks and NBFCs. Recently, it tied up with Axis Bank to launch a numberless co-branded credit card.
Outlook for FY25
According to Mehrotra, the company in FY24 did a total disbursement of Rs 10,000 crore and aims to disburse around Rs 16,000 crore in FY25. And in FY24, Fibe reported a profit after tax (PAT) of around Rs 100 crore. “Last year we did Rs 10,000 crore in disbursements and aim to do Rs 16,000 crore this year. Our assets under management (AUM) will grow from Rs 4,000 crore to Rs 6,500 crore. Additionally, we expect a 50 percent growth in profit in FY25,” he said.
The latest published financial numbers showed that the company in FY23 reported a 135 percent jump in operating revenue to Rs 414.3 crore while the consolidated net profit zoomed 9X to Rs 36.3 crore on the back of strong growth in business.
On fintech SRO
On Self-Regulatory Organisations (SROs) for the fintech sector, Mehrotra said, “The SRO would be hugely beneficial for the fintech industry. And with the SRO coming in, the regulator will have more hands in quicker implementation for smaller companies.”
SRO for the fintech sector should be development oriented, true representative and legitimate arbiter of disputes, the Reserve Bank of India (RBI) said on May 30 in its framework release.
The SROs should also be independent from influence, encouraging members to subscribe to regulatory expectations and repository of information, it added. The central bank released 'Framework for Recognising Self-Regulatory Organisation(s) for FinTech Sector' (SRO-FT framework).
The SRO-FT should be capable of motivating its members to align with regulatory priorities. This should involve facilitating communication between industry players and RBI, advocating for necessary changes, and promoting a culture of compliance, the RBI said.
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