Fintech Startup Stashfin Secures $100 Mn Debt To Drive Growth, Scale Credit Access

SUMMARY

Stashfin will use the funds to optimise the portfolio for ‘potential securitisation’ and drive rapid growth

Since its inception, Stashfin has raised $415 Mn in equity and debt funding

The startup reported a loss of INR 18.64 Cr in FY22 as compared to a loss of INR 13.39 Cr in FY21

Fintech startup Stashfin has secured $100 Mn in debt funding from InnoVen Capital and Trifecta Capital, with participation from other domestic investors. This debt round is a follow-up to the $270 Mn Series C funding round Stashfin raised last year.

Stashfin will use the funds to drive growth and enhance customer experience. The capital will also be deployed towards optimising the portfolio for ‘potential securitisation’.

“… It is promising to see how our efforts and unique product offering have helped us scale swiftly and benefited all of our partners and stakeholders. The new collaborations will add more velocity to our growth given our robust business model and extensive market demand,” founder and CEO of Stashfin Tushar Aggarwal said.

Chiming in, InnoVen Capital’s MD Ashish Sharma said, “We are confident that our partnership will further drive positive growth for the organisation, and Stashfin will continue to play a crucial role in the fintech ecosystem.”

“We are delighted to partner with Stashfin. They are amongst the most efficient and credible new age fintech companies in India with potential for exponential growth,” Trifecta Capital’s cofounder and MD Nilesh Kothari said.

Founded in 2016 by Aggarwal, the neobanking startup offers credit line cards to underserved segments of the Indian population to allow users to avail credit and transact instantly. Some of its other financial products include point-of-sale (PoS) machines, mobile wallets and payment gateways.

Including the current fundraising, Stashfin has so far raised $415 Mn in equity and debt funding from multiple investors. The company is backed by marquee names such as Uncorrelated Ventures, Fasanara Capital, and Abstract Ventures, among others.

The startup claims to have offered its services to more than 10 Mn customers.

“It is promising to see how our efforts and unique product offering have helped us scale swiftly and benefited all of our partners and stakeholders. The new collaborations will add more velocity to our growth given our robust business model and extensive market demand,” Aggarwal said.

The startup reported a loss of INR 18.64 Cr in the financial year 2021-22 (FY22) compared to a loss of INR 13.39 Cr in FY21. It also posted operating revenue of INR 47.5 Cr in FY22 against INR 8.3 Cr in the previous fiscal.

According to an Inc42 report, India’s fintech sector is anticipated to reach $1.3 Tn by 2025. Of this, the lendingtech space is expected to account for $616 Bn of the total addressable market size by 2025.