Stashfin Raises $270 Mn To Expand Footprint Across South Asia, SEA

SUMMARY

The funding round was a mix of debt and equity, and Stashfin is valued between $700 Mn and $800 Mn now

The round was led by Uncorrelated Ventures, Fasanara Capital and Abstract Ventures, with participation from existing investors

Stashfin, founded in 2016, is a lending platform that offers credit line cards to the underserved segments of the population

Fintech startup Stashfin has raised $270 Mn via a mix of equity and debt as part of its Series C funding round led by Uncorrelated Ventures, Fasanara Capital and Abstract Ventures. Post the fundraise, the startup is now valued between $700 Mn and $800 Mn.

The round also saw participation from existing investors, including Altara Ventures, Kravis Investment Partners and Snow Leopard.

While $200 Mn was raised as debt, $70 Mn was raised in equity. Uncorrelated Ventures and Fasanara Capital led the equity funding round with participation from existing investors, while Fasanara Capital led the credit facility of $200 Mn.

Stashfin will use the funds to expand its footprint across Southeast Asia and South Asia. It will also use the investment to ramp up its technology for new products.

“The fundraise is a key milestone in this challenging macro environment…We are now at the cusp of transforming into a compound startup, offering multiple financial products for consumers with a wide spectrum of credit risks. We have launched some exciting products and onboarded an extremely talented team,” Stashfin chief operating officer (CEO) Tushar Aggarwal said.

Stashfin, founded in 2016 by Aggarwal, is a lending platform that offers credit line cards to the underserved segments of the population. These credit line cards allow users to avail instant credit and transact across channels.

The startup predominantly targets middle-class Indians and claims to offer disbursals in under four hours.

The startup had last raised $40 Mn in its Series B funding round led by a clutch of global investors including Altara Ventures and Uncorrelated Ventures. According to Crunchbase, the startup had raised more than $75 Mn in funding, prior to the latest round.

Stashfin deploys artificial intelligence (AI) and machine learning (ML) for its underwriting platform and claims to be entirely profitable. The startup claims to have grown 10X in the last 12 months, nearing an annualised run rate (ARR) of $100 Mn. It expects to grow 4-5 times this year with a projected ARR of more than $400 Mn in the next 12-18 months.

The big ticket fundraise comes amid a slowdown in funding in the Indian startup ecosystem. According to an Inc42 analysis, funding for Indian fintech startups fell 45% to $1.77 Bn in the first quarter of 2022 (CY22) from $3.2 Bn in Q4 of CY21. The average ticket size also fell 40% to $24.5 Mn in Q1 CY22 from $40.5 Mn in Q4 CY21.

On a year-on-year (YoY) basis, however, the funding nearly tripled from $692 Mn in Q1 CY21 to $1.77 Bn in Q1 CY22.

India’s total fintech market opportunity is projected to reach $1.3 Tn by 2025, as per an Inc42 report. Within fintech, the lendingtech space is the fastest growing sub-segment and is likely to account for $616 Bn, or 47% of the total addressable market size, by 2025.

Recently, Bengaluru-based B2B fintech startup FinBox raised $15 Mn in a funding round led by A91 Partners. Earlier this month, fintech unicorn slice raised $50 Mn as part of its Series C funding round led by Tiger Global.

Buy now pay later (BNPL) player Siply also raised $19 Mn through a mix of debt and equity in its pre-Series A funding round led by QI Ventures this month. In May, another BNPL startup ShopSe raised $6.1 Mn as a part of its Series A funding led by BEENEXT, Chiratae Ventures and White Venture Capital.

Join us and navigate the downturn with India’s top 1% fintech and BFSI leaders at Fintech Summit 2022 by Inc42.