FincFriends secures Rs 41 Cr debt funding to expand lending
The company said it is targeting Tier II and Tier III markets, aiming to reach borrowers typically underserved by traditional financial institutions.
FincFriends, a Reserve Bank of India (RBI)–registered non-banking financial company (NBFC), has raised Rs 41.5 crore in debt from existing investors in the first quarter of fiscal 2025–26 to grow its presence in smaller cities and towns.
The round follows the company’s Rs 98.5 crore ($11.2 million) debt raise in the fourth quarter of the previous fiscal. Investors in the latest tranche include IBL Finance, Moneywise Financial Services, Usha Financial Services, Shine Star Build Cap, Realtouch Finance, and UC Inclusive Credit.
“This funding brings us a step closer towards our mission to democratise credit access for underserved segments,” said Artem Andreev, Chief Executive Officer of FincFriends. “With the continued trust of our lending partners and investors, we are confident that RupeeRedee will play a transformative role in reshaping digital lending in India.”
Founded in 2017, FincFriends operates the RupeeRedee platform, which offers unsecured loans through a fully digital process. The company said it is targeting Tier II and Tier III markets, aiming to reach borrowers typically underserved by traditional financial institutions.
Similar startups have also tapped the market for growth capital. AI-led digital lender Zype raised Rs 90 crore in Series B funding led by Japan’s UNLEASH Capital Partners, with participation from existing investor Xponentia Capital, to expand products, grow in Tier II and III cities, and strengthen its profit-focused model.
Separately, Fibe’s lending arm, EarlySalary Services, raised Rs 225 crore via a July NCD issue, attracting institutional investors such as Franklin Templeton AIF India. The company said proceeds will support loan book growth and credit expansion. Both moves highlight sustained investor interest in India’s digital lending sector despite a cautious credit environment.
Edited by Megha Reddy