Pune-based consumer lending startup Fibe, formerly known as EarlySalary, has secured $90 million in a Series E round. This financing round, which includes both primary and secondary transactions, comes at a challenging time for fintech lending startups focused on unsecured consumer lending, given the Reserve Bank of India’s increased scrutiny.
Key Highlights:
- Total Funding: $90 million
- Primary Investment: $66 million
- Secondary Shares: Remaining amount
Lead Investors:
- TR Capital
- Trifecta Capital
- Amara Partners
Existing Investors:
- TPG Rise Fund
- Norwest Venture Partners
- Eight Roads Ventures
- Chiratae Ventures
Valuation:
- Post-Money Valuation: Estimated between $590-600 million
- Series D Valuation: $350 million
Detailed Investment Breakdown:
- The Rise Fund: Rs 133 crore ($16 million)
- Kabira Holdings: Rs 125 crore ($15 million)
- Eight Roads Ventures: Rs 41.6 crore ($5 million)
- Norwest Capital: Rs 62.5 crore ($7.5 million)
- Trifecta Capital: Rs 55 crore ($6.6 million)
- Amara Partners: Rs 29.17 crore
- Chiratae Ventures: Rs 100 crore
Ownership Stakes Post-Funding:
- TPG’s The Rise Fund: 22.72%
- Eight Roads Ventures: 15.8%
- Norwest Capital: 13.58%
- Chiratae Ventures: 9.59%
- Kabira Holdings: 6.01%
Founders and Business Model:
Founded in 2015 by Akshay Mehrotra and Ashish Goyal, Fibe offers a range of personal and impact loans in categories such as healthcare, education technology, insurance financing, and school fee financing. Recently, Fibe also launched India’s first numberless co-branded credit card, expanding its innovative financial product offerings.
Future Plans:
According to regulatory filings, the company plans to use the newly raised funds for expansion and growth initiatives as outlined by its board. This strategic infusion of capital is expected to bolster Fibe’s market presence and support its mission to provide accessible and impactful lending solutions.
Conclusion:
Fibe’s successful $90 million funding round underscores the strong investor confidence in its business model and growth potential, despite the challenging regulatory environment for fintech lenders in India. With substantial backing from leading global investors, Fibe is well-positioned to continue its expansion and innovate within the consumer lending space