[Funding alert] Clix Capital announces $40 M fresh capital infusion from existing investor AION Capital

There are 50 million SMEs in India and Clix is going after this market, having already reached four million customers, in three years.

Clix Capital Services Pvt Ltd – one of India’s largest digital lending NBFCs – on Monday announced its latest round of capital infusion of $40 million, or about Rs 280 crore, from its existing investor AION Capital Partners Ltd, as well as its promoters Pramod Bhasin and Anil Chawla.

Augmenting the company’s original capital base of $250 million, or about Rs 1,800 crore, the latest round of funding will be used to expand the business across its varied segments, especially consumer finance and digital platforms.

Pramod Bhasin - Founder and Chairman, Clix Capital

Elaborating on the announcement, Pramod Bhasin, Founder and Chairman – Clix Capital, said,

“At Clix, we are continuously trying to bridge the credit gap in the unserved and underserved segments such as new-to-credit customers and MSMEs. Towards this objective, we use cutting-edge technologies and insightful innovations to drive lending models that are responsive to the needs of end-customers while significantly expanding financial inclusion."

With the fresh equity infusion, Clix plans to continue its steady credit quality-led growth, focussing on the retail-lending segment, to achieve a 70 percent composition by March 2020.

The company believes the current liquidity squeeze in the lending space is also likely to present additional opportunities for selective acquisitions.

Clix has scaled up and expanded its footprint to four million customers over the past three years, by building a strong franchise of fast-growing businesses across SME lending, consumer finance, mortgages and equipment finance segments.

The company is targeting a loan book of Rs 5,500-6,000 crore by the end of FY20, as compared to Rs 5,000 crore currently. It has a presence across 12 cities in India and envisages deeper penetration in these markets.

On the latest capital infusion, Parth Gandhi, Senior Partner and Managing Director – AION Capital, said,

“Quality and scale will determine success in financial services in the future. Apart from infusion of capital, as majority partner, we are committed to bring in our global best experiences and expertise of technology and practices to Clix’s business. Our attempt would be to grow the Clix business steadily while maintaining a watchful eye on asset quality and profitability.”

In September 2016, AION Capital, along with promoters Pramod Bhasin and Anil Chawla, had bought the commercial finance business of GE Capital in India.

Clix leverages technology, data and deep analytics to provide unparalleled credit access and a seamless experience to its customers. Sound risk management practices and a heavy focus on data-driven decision-making has helped the company maintain great portfolio quality.

(Edited by Suman Singh)