Fibe’s lending arm raises Rs 225 Cr in debt

Fibe’s lending arm EarlySalary has raised Rs 250 crore ($26.5 million) through non-convertible debentures (NCDs) from a clutch of investors including AK Capital Finance, Franklin Templeton AIF, Vivriti Alpha, SK Finance, Incred Capital, MAS Financial Services, and IB Future Tech.

The board of EarlySalary passed a special resolution to allot 20,500 NCDs at an issue price of Rs 1 lakh each, amounting to Rs 205 crore ($24 million), as per its filings with the Registrar of Companies (RoC). The debentures are issued in dematerialised form with a coupon rate of 10.7%. AK Capital led the debt round with Rs 45 crore, followed by SK Finance (Rs 35 crore), Incred Finance (Rs 20 crore), and Vivriti Finance (Rs 20 crore), among others.

According to the company’s press statement issued on Tuesday, Franklin Templeton Alternative Investment Fund contributed Rs 20 crore through a primary issuance, taking the total infusion to Rs 225 crore ($26.5 million).

The funds raised will further accelerate the company’s innovation-led growth and strengthen its lending operations, addressing the credit demand from young, tech-savvy, and salaried individuals, said the statement.

In June this year, its holding entity, Social Worth Technologies (Fibe), passed a resolution to infuse Rs 100 crore into EarlySalary in tranches. The move follows the RBI’s November 2023 directive raising risk weights on personal loans from 100% to 125%, necessitating additional capital support, regulatory filings show.

Founded in 2015 by Akshay Mehrotra and Ashish Goyal, Fibe offers personal loans and impact loans in categories such as healthcare loans, edtech loans, insurance financing, and school fee financing, among others. The brand also recently launched India’s first numberless co-branded credit card.

Fibe has raised over $230 million to date, including a $90 million Series E round led by TR Capital, Trifecta Capital, and Amara Partners. Earlier, it secured $110 million in its Series D round from TPG and Norwest Venture Partners.

The company is yet to file its FY25 numbers. During the fiscal year ended March 2024, its consolidated revenue surged 2X to Rs 812 crore from Rs 392 crore in FY23. At the same time, profits for the company spiked 18X to Rs 101 crore in FY24, compared to Rs 5.4 crore in FY23.