Exclusive: Stashfin Raises INR 79 Cr Debt From Northern Arc, Others

Digital lending startup Stashfin has secured INR 78.8 Cr (around $9.3 Mn) debt from investors, including Northern Arc and Coinmen Special Opportunities Fund, in multiple tranches since January.

The NBFC raised the capital through a combination of secured, listed non-convertible debentures (NCDs), pass-through certificates and commercial papers, as per regulatory filings sourced from the Registrar of Companies (RoC).

The remaining capital was ploughed in by Asvanta Financial Consultants, Infixin Technologies, AlgoBulls Technologies, among others.

The fintech startup plans to use the fresh capital to meet its capital expenditure (capex) requirements and extend credit to borrowers, its cofounder and CEO Tushar Aggarwal told Inc42.

“Stashfin raised INR 160 Cr+ in Q4 ended FY25 via a combination of term loans, secured listed NCDs, pass-through certificates and commercial papers from several lenders and investors, which include the likes of Northern Arc, Coinmen Special Opportunities Fund, among others,” he said in a statement. 

Aggarwal noted that Stashfin distributed loans worth about INR 3,500 Cr in 2024 alone, while its total disbursals since inception stand at INR 13,000 Cr.

Stashfin Eyes Entry Into UPI Market

Founded in 2016 by Aggarwal and his spouse Shruti, Stashfin initially provided credit line-linked Visa cards to customers with EMI-based loans of up to INR 5 Lakh. Since then, it has diversified into insurance, payments, commerce and curated solutions for corporate bonds.

Its core customer base consists of professionals aged 25 to 28, who utilise these loans for requirements like home improvement, educational expenses (tuition fees) and upskilling courses.

It also offers the ‘Sentinel Program’ for India’s defence personnel and veterans, which now accounts for 20% of its portfolio. 

In January, the startup told Inc42 that it was also looking to secure a third-party application provider (TPAP) licence from the National Payments Corporation of India (NCPI) to offer UPI-based credit and payment solutions. The UPI market in India is currently dominated by PhonePe and Google Pay, which held a combined 83% share in April.

In the aforementioned statement, Aggarwal said that Stashfin is currently in the process of launching its UPI services. However, he did not specify a timeline for the launch.

It is pertinent to mention that Stashfin is the first NBFC to offer NCDs on BSE to expand its capital pool. The move came after markets regulator SEBI amended its rules for listing NCDs, reducing the minimum face value of debt securities to INR 10K from INR 1 Lakh previously.

Stashfin has seen exponential growth over the last few years, with its revenue increasing to INR 800 Cr in FY24 from INR 21 Cr in FY21. Its profit skyrocketed to INR 68 Cr in the year ended March 2024 from INR 1.8 Cr in FY21.

For the nine months ended December 31, 2024 (9M FY25), the lending tech startup reported an “adjusted pre-tax profit” of INR 90 Cr on total revenue of INR 585 Cr, according to Aggarwal.

Fintech NBFCs Look To Cash In On IPO Bonanza

Stashfin goes toe-to-toe with Kissht, CASHe, Fibe, IPO-bound Navi, among others, in India’s burgeoning digital lending market, which is projected to become a $1.3+ Tn market opportunity by 2030 from $402 Bn+ in 2024, growing at a CAGR of 22% during the period.

The new funding for the Singapore-headquartered startup comes at a time when fintech NBFCs are witnessing increased investor interest. Mumbai-based Kissht, which roped in Sachin Tendulkar as an investor last year, is reportedly looking to float a $225 Mn IPO by June 2025.

In the lead up to its FY26 IPO, Sachin Bansal-led Navi was also said to be in talks to raise $200 Mn to $300 Mn from undisclosed investors.

Meanwhile, fintech giant MobiKwik, which went public in 2024, also incorporated a NBFC subsidiary last month.

[Edited By Vinaykumar Rai]