Finnable, a Bengaluru-based digital lending platform, is gearing up for a significant funding round, aiming to raise approximately ₹30.55 crore (around $3.7 million) in a Series B financing effort. The funding will be led by the TVS Shriram Growth Fund, alongside several prominent investors, marking an important milestone for the fintech startup.
PC: ANI News
Details of the Funding Round
The board of Finnable has passed a resolution for the issuance of 92,831 preference shares at ₹3,290.95 each. In return for the capital that would be raised through this round of funding, the company would not only strengthen its financial position but also sharpen its ability to lend personal loans to salaried professionals-mainly its customer segments.
The private equity growth-expansion fund managed by the TVS Capital, TVS Shriram Growth Fund will invest ₹19.40 crores in this round. Private limited company, Malpani Retails has agreed to inject ₹4.70 crores, while remaining ₹6.45 crores will be from other investors: Harsh Anand Jain, and Neha Bagaria collectively.
Post-allotment, Finnable is projected to achieve a valuation of around ₹866 crore (over $100 million), according to data from startup intelligence platform TheKredible. This valuation reflects the growing interest in digital lending solutions, especially in the wake of increasing demand for personal loans among salaried individuals.
Stake Distribution
After this funding round, ownership stakes will be distributed among key investors. The MEMG Family Office LLP will hold an 18.69% stake in Finnable, while Matrix Partners India will hold 14.53%. The TVS Shriram Growth Fund will have an 8.05% stake. This distribution of stakes shows strategic alignment among investors with a focus on scaling Finnable’s operations and enhancing its market reach.
About Finnable
It has established itself well since its 2016 initiation by a set of ex-bankers- Nitin Gupta, Amit Arora, and Viraj Tyagi. As one of the players in digital lending, it aims to issue personal loans primarily designed for the salaried segment, and making it very accessible for those seeking credit lines. Since founding, Finnable has raised up to $5.77 million from three different rounds of investment. The round includes Manipal Global and the MEMG Family Office.
As of the last reported financial year (FY23), Finnable generated over ₹100 crore in revenue, although it recorded a loss of ₹19.51 crore. The company has yet to file its annual report for FY24, but the positive revenue trajectory suggests a growing demand for its services.
Strategic Implications
The upcoming funding round comes at a crucial time for Finnable as it seeks to enhance its operational capabilities and expand its customer base. With the financial backing from established investors like TVS Shriram Growth Fund, Finnable is well-positioned to scale its services and leverage the increasing trend of digital lending in India.
The fintech sector in India has witnessed rapid growth, driven by technological advancements and a rising demand for accessible financial services. Finnable’s focus on personal loans aligns well with this trend, making it a company to watch in the coming months.
The recent funding round by Finnable indicates the ongoing interest and investments in the fintech sector, especially in the digital lending platform. With strategic alliances and a good business model, Finnable has tremendous prospects for growth that will help the company’s investors as well as its customers. In this regard, it stands as a testament to the vibrant startup ecosystems in India since the company is preparing to close this funding.
