New Delhi, Nov. 11 -- Digital lending platform Finnable said Tuesday it has raised Rs 500 crore ($56.4 million) in equity funding, led by venture capital firm Z47 (formerly Matrix Partners India) and homegrown private equity firm TVS Capital.
The company plans to use the capital to expand its product portfolio, strengthen partnerships, and invest in technology and data science, it said in a statement.
The announcement comes a few months after VCCircle reported in July that the company was looking to raise about $50 million in a new round of funding. TVS Capital had invested in the company earlier this year, too, along with a few angel investors. Finnable also counts Manipal Group chairman Ranjan Pai's family office as an investor.
Founded in 2018 by Nitin Gupta and Amit Arora, Finnable provides personal loans to salaried professionals earning between Rs 15,000 and Rs 50,000 a month, which it says are segments often overlooked by traditional banks.
The company provides loans for needs such as healthcare, education, and home improvement. Its hybrid model combines digital underwriting with physical verification and in-house collections, a structure the founders say helps reduce default risk and improve customer relationships.
According to Finnable, its customer base largely consists of first-time borrowers. About 65% of users fall into this category, yet Finnable claims their repayment behaviour is on a par with experienced credit users. The company recently secured a BBB+ rating from CARE Ratings, reporting gross non-performing assets of 1.1% and assets under management of Rs 3,100 crore. It turned profitable last year while maintaining a conservative capital burn.
"Millions of salaried professionals remain outside the formal credit system despite being financially disciplined," said Gupta, co-founder and CEO of Finnable. "We have built a model that can serve them responsibly and profitably."
Arora, the other co-founder, added that Finnable aims to serve over one million customers and grow its loan book to Rs 10,000 crore within the next four years.
Z47 managing director Vikram Vaidyanathan said Finnable's "phygital" model and use of AI in risk management have allowed it to maintain high asset quality. "We are doubling down on our partnership as they expand their product suite for India's rising professionals," he said.
TVS Capital managing partner Krishna Ramachandran said the company's mix of digital processes and physical presence created a 'resilient business model' in a segment often missed by larger lenders.
Published by HT Digital Content Services with permission from VC Circle.