Finnable raises Rs 500 Cr in equity round led by Z47 and TVS Capital
The company said the new funding will go toward expanding its product suite, deepening partnerships with employers and financial institutions, and investing further in data science and technology.
Digital lender Finnable has raised Rs 500 crore in an equity round led by Z47 and TVS Capital, as the company looks to expand its lending portfolio targeting salaried professionals outside the formal credit system.
The company said the new funding will go toward expanding its product suite, deepening partnerships with employers and financial institutions, and investing further in data science and technology.
Founded by Nitin Gupta and Amit Arora, Finnable targets salaried individuals earning between Rs 15,000 and Rs 50,000 a month, many of whom remain outside the traditional credit system.
The company combines digital underwriting with physical verification and collections, maintaining all collections staff on payroll to improve oversight and asset quality.
Finnable has kept gross non-performing assets at 1.1%, below the industry average, and achieved profitability last year with minimal equity burn. Its assets under management stand at Rs 3,100 crore.
"We built a model that serves them responsibly, at scale, and profitably. Our first-time BBB+ rating is proof that fintech can be both fast and financially sound,” said Co-founder and CEO Nitin Gupta.
“Over the last few years, we’ve proven that sustainable lending can be tech-first, data-driven, and deeply human,” said co-founder Amit Arora. “We’re now focused on serving over one million customers in the next four years and expanding our loan book to Rs 10,000 crore.”
“Nitin and Amit’s multi-decadal experience in lending coupled with a sharp risk focus and AI-assisted fraud prevention has enabled Finnable to operate with industry-leading asset quality,” Vikram Vaidyanathan, managing director at Z47.
TVS Capital, which joined the round, said Finnable’s model stood out for its focus on the MSME workforce and disciplined growth. “Finnable’s frictionless financing solutions cater to the often-overlooked employees of MSME segments, combining digital efficiency with physical presence to create a uniquely resilient business model,” said Krishna Ramachandran, managing partner at TVS Capital.
Edited by Megha Reddy