Fintech Startup RING Raises INR 100 Cr Debt From Trifecta Capital To Grow Loan Book

Lending tech startup RING (formerly Kissht) has raised a debt funding of INR 100 Cr (about $12 Mn) from venture financing platform Trifecta Capital. 

In a statement, the startup said it will utilise the fresh funds for on-lending and to expand its loan book.

RING is a subsidiary of OnEMi Technologies, founded in 2015 by Krishnan Vishwanathan and Ranvir Singh. 

Launched in 2022, the RING app offers long and short-term loans. The startup claims that it offers multi-tenured loans of up to INR 5 Lakh at low interest rates and flexible repayment options. It also allows users to make UPI payments. 

RING claims to have 10 Lakh merchants across the country who help it acquire customers. 

This is the second time that Trifecta Capital has extended a debt to the lending tech startup. In 2022, RING raised INR 100 Cr in a funding round led by Trifecta Capital and Northern Arc. At that time, Trifecta Capital and Northern Arc each subscribed to INR 50 Cr of non-convertible debentures (NCDs). 

With the initial INR 50 Cr backing from Trifecta Capital, the startup said in a statement that RING has been able to build a digital-first consumer lending business with a focus on self-employed customers across Indian Tier-I, II, and III cities. 

It claims to have assets under management (AUM) of INR 3,000 Cr and served 1 Cr borrowers in FY24.

“…This infusion of venture debt from Trifecta Capital not only validates our success but also provides the financial flexibility needed to further our mission of promoting financial inclusion across India. Together, we are poised to redefine the future of finance and empower millions towards a brighter, more inclusive tomorrow,” RING’s founder Vishwanathan said. 

RING’s parent OnEMi’s net profit zoomed 47% to INR 95.5 Cr in the financial year 2022-23 (FY23) from INR 62.6 Cr in the previous fiscal year. Meanwhile, revenue doubled year-on-year to INR 1,037.5 Cr during the year under review. 

In an interaction with Inc42, OnEMi founder and CEO Singh said that the startup was aiming for long-term loans to account for 75% to 80% of its loan book by the end of FY24.

Meanwhile, Trifecta Capital announced the final close of its third venture debt fund, Trifecta Venture Debt Fund III, at INR 1,777 Cr in September last year. 

Commenting on the latest funding, Trifecta Capital’s director for venture debt Abhijit Joshi said, “RING, led by a robust founding and management team, has demonstrated that a consumer lending business can be built at a meaningful scale, despite a highly dynamic regulatory environment and variances in supply of capital. RING has achieved all this, while maintaining strong unit economics and keeping credit costs under check.”