Lendingtech startup Fibe (erstwhile EarlySalary) said Wednesday it has raised Series E funding in a round led by private equity firms TR Capital and Amara Partners as well as Trifecta Capital.
The total size of the round is $90 million (Rs 750 crore) and it comprises both primary and secondary transactions, Fibe said in a statement. It didn’t give a breakup of the primary and secondary components.
The company’s existing investors TPG Rise Fund, Norwest Venture Partners, Eight Roads Ventures and Chiratae Ventures also participated in the round, Fibe said.
For Amara, founded by former Mahindra Partners executive Parag Shah and former Omidyar executive Piyush Soone, the deal comes close on the heels of its investment in auto component maker Lumax Auto.
Fibe, founded in 2015 by Akshay Mehrotra and Ashish Goyal, offers personal loans and impact loans such as healthcare loans, edtech loans, insurance financing, and school fee financing.
The company claims that it has been able to lower credit costs for consumers due to its focus on lending technology and risk management systems. It also recently launched a numberless co-branded credit card.
“Over the last few years, we have launched multiple financing solutions for healthcare, insurance and education besides our core personal loan offering to provide affordability to customers,” said Goyal, co-founder and chief financial officer, Fibe. “The fresh funds will be deployed to further strengthen the existing product lines at Fibe.”
Fibe also plans to deploy the new fund for business expansion, market outreach and curate more products across its impact loans portfolio. “With this new capital injection, we are poised to expand our reach, strengthen our technological infrastructure, and deepen our impact across India,” said Mehrotra, co-founder and CEO, Fibe.
Fibe has significantly expanded its presence in India and now operates in 350 cities. It claims to have disbursed more than 6 million loans worth over Rs 20,000 crores since inception.
In the financial year through March 2023, Fibe reported an almost 10 times increase in its consolidated net profit to Rs 36.3 crore from Rs 4 crore in FY22. Its consolidated revenue from operations surged to Rs 414.2 crore in FY23 from Rs 176.2 crore the year before.