Neobanking startup StashFin has raised $270 million (around Rs 2,079 crore) in a mixture of debt and equity in a round led by Uncorrelated Ventures, Fasanara Capital and Abstract Ventures. This funding round values the fintech platform between $700-800 million.
Existing backers Altara Ventures, Kravis Investment Partners, and Snow Leopard also took part in this round.
The fresh funds will be used to expand its presence in Southeast and South Asia and upgrade its technology for new product launches, the company said in a statement.
"The fundraise is a key milestone in this challenging macro environment. We are now at the cusp of transforming into a compound startup, offering multiple financial products for consumers with a wide spectrum of credit risks," said Tushar Aggarwal, Founder, chief executive officer, StashFin.
Founded in 2016, StashFin is a neobanking platform that helps customers by improving their financial health, offering flexibility and affordable interest rates. StashFin said it saw 10-fold growth in its monthly business in the past 12 months and is currently in-line to touch an ARR (annualized revenue run rate) of $100 million.
StashFin has an NBFC (non-banking financial company) licence in India. It offers credit lines through Visa to middle-class Indians, offering loans starting at Rs 10,000.
“Digital retail lending in India is growing fast. StashFin’s underwriting platform is not only profitable, but scales with unit economics amid challenging market conditions. There are many players in the neobanking space, but few share the commitment and ability to serve the underserved and unserved segments that traditional banks and neobanks ignore,” said Salil Deshpande, founder and general partner, Uncorrelated Ventures.
StashFin, which is headquartered in Delhi and has a presence in seven other cities in India, was acquired by Singapore-based Morus Technologies in 2017.
In April, StashFin raised $40 million in its Series B round of funding from Altara Ventures, Uncorrelated Ventures, Integrated Capital, Kravis Investment Partners, Saison Capital and Tencent Cloud Europe BV.