Non-bank lender Credit Fair has received $5 million (about Rs 43.4 crore) in debt capital from a British International Investment-backed firm, the company said.
The company raised these funds from the $75-million green basket bond issued by impact investment-focussed platform Symbiotics Investments. The bond, which is the second of its kind, was issued by Symbiotics Investments and subscribed to by British International Investment (BII), the UK’s development finance institution and impact investor. The bond is intended to drive the adoption of renewable energy solutions across Asia and Africa.
Credit Fair, operated by KM Global Credit Pvt. Ltd, will use these funds to expand its presence in the rooftop solar financing space, primarily targeting residential as well as MSME customers, including housing societies, in tier-2 and tier-3 cities.
Specifically, the company said that it will deploy the money to address the growing demand for rooftop solar installations, helping underserved communities with affordable and accessible financing options.
“With this $5 million, we plan to fund 2,500 new rooftop solar projects, directly contributing to the reduction of carbon emissions and providing sustainable energy solutions to thousands of customers,” said Vikas Agarwal, co-founder, Credit Fair.
Founded in 2018, Credit Fair focusses on financing solar installations for both individuals and micro, small and medium-sized enterprises. So far, the company has onboarded over 1,000 solar installers and is funding their customers. The company monitors the end-use of loans to ensure that they are deployed for impactful projects such as rooftop solar installations.
Credit Fair is backed by various institutional investors including LC Nueva and Capital A. The company has also secured debt funding from many large banks and non-banking financial companies.
In 2022, the company had raised $10 million in an extended seed round led by LC Nueva Investment Partners. The round also saw participation from Caspian Impact Investments and Vivriti Capital, among others.
