RupeeRedee, a fintech startup in India, secured $3.5 million in equity funding from its parent company Digital Finance International. This funding aims to expand its operations and enhance product offerings, with plans for an additional $10 million investment by FY24. Specializing in short-term personal loans, RupeeRedee is making strides in the growing lending tech sector in India.
FincFriends, a banking financial company (NBFC) that operates alongside the digital lending platform RupeeRedee has recently secured $3.5 million, in equity funding from its parent company Digital Finance International (DFI) based in Cyprus.
With this funding round, the total equity raised by RupeeRedee now stands at $11.6 million, including the round in September 2022. This investment follows a $6 million funding round that the startup received from DFI back in 2019. Additionally, RupeeRedee disclosed that DFI plans to invest $10 million by the end of FY24 to support business growth.
The primary objective of utilizing this influx of capital is to expand and enhance RupeeRedees operations and develop product offerings. Furthermore, this financial boost will strengthen RupeeRedees’ commitment to expanding its credit portfolio.
Aznabaev Roman, who heads RupeeRedee in India expressed their enthusiasm about this investment. Highlighted its potential for scaling operations and diversifying product offerings. They also emphasized their dedication to promoting inclusion within emerging markets while creating value for customers and stakeholders.
Established in 2018 RupeeRedee specializes in providing ticket-term personal loans targeted at underserved segments such, as first-time borrowers who are salaried or self-employed. RupeeRedee collaborates with FincFriends to offer term loans alongside various digital lending services.
The fintech startup assures loan approvals with a processing time of 10 minutes. Typically the loans provided by RupeeRedee amount to INR 25,000. Have a duration of six months. They claim to operate in, over 150 cities across the country.
The funding received by this lending platform reflects the growth of lending tech within the fintech industry. According to experts cited in the ‘State of Indian Fintech Report, Q2 2023’ lending tech is projected to reach a market opportunity $1.3 trillion by 2030. This sector is expected to grow at a compound growth rate (CAGR) of 22% between 2022 and 2030.
Notably several notable funding rounds have taken place within this segment in times. DMI Finance secured $400 million in funding Mintifi raised $110 million. Kreditbee obtained $100 million. In fact according to a media report eight out of the ten fintech funding rounds, during H1 2023 were focused on lending tech.
