Kunal Shah’s Newtap Finance Posts INR 5.6 Cr Profit In First Year Of Operations

Kunal Shah’s Newtap Finance Posts INR 5.6 Cr Profit In First Year Of Operations

SUMMARY

Newtap Finance’s revenue from operations stood at INR 15.53 Cr during the year ended March 2023, while its total revenue stood at INR 17.06 Cr

Total expenses stood at INR 9.27 Cr in FY23, with finance costs accounting for the biggest portion of expenses at INR 5.15 Cr

Newtap Finance had a loan book of INR 273 Cr, built primarily through CRED, at the end of the year

Newtap Finance, a non-banking finance company (NBFC) founded by CRED founder Kunal Shah, posted a net profit of INR 5.63 Cr in the financial year 2022-23 (FY23), the first year of its operations.

As per its regulatory filing with the Ministry of Corporate Affairs, Newtap Finance’s revenue from operations stood at INR 15.53 Cr during the year ended March 2023, while its total revenue stood at INR 17.06 Cr.

On the expenditure front, total expenses stood at INR 9.27 Cr. At INR 5.15 Cr, finance costs accounted for the biggest portion of expenses, while Newtap Finance’s employee benefits expenses stood at INR 1.35 Cr in FY23.

According to the filing, Newtap Finance had a loan book of INR 273 Cr, built primarily through CRED, at the end of the year.

Newtap offers short-term personal loans to CRED users via the fintech giant’s buy-now-pay-later (BNPL) offering, CRED Flash. Currently, CRED Flash is only available to select CRED users within the CRED store and at some large ecommerce portals where CRED is integrated as a checkout option.

The Kunal Shah-led fintech giant has already helped its partner lenders create a loan book of around INR 10,000 Cr through CRED Cash. 

Newtap Finance, previously known as Parfait Finance, was acquired by Newtap Technologies in 2021. The new entity was rebranded as Newtap Finance and started operations in the last financial year.

While the NBFC has not received any ratings from rating agencies, it would be able to source debt funding from banks and larger NBFCs once it’s rated.

Newtap Finance is currently looking for a CEO and will set up a fresh management team to operate as a full-service NBFC, ET reported citing a source. It is also looking to establish itself as a standalone lending platform to work with lenders beyond CRED.

“They will even help other fintechs process loans in a compliant manner by sharing the platform they have built,” the report quoted a source as saying. The NBFC will also look to raise equity and debt capital independently, the publication added. Earlier, media reports suggested that Newtap Finance will look to raise around $50-70 Mn.

To bolster its lending vertical, CRED also acquired lending SaaS startup CreditVidya in November 2022, which operates Prefr, a digital lending platform that has developed underwriting and risk assessment models crucial for a lending product.

CreditVidya’s acquisition gave CRED access to a second NBFC alongside Newtap. The fintech unicorn also made investments in lending tech startups Liquiloans and CredAvenue last year before launching CRED Cash.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Kunal Shah’s Newtap Finance Posts INR 5.6 Cr Profit In First Year Of Operations-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Kunal Shah’s Newtap Finance Posts INR 5.6 Cr Profit In First Year Of Operations-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Kunal Shah’s Newtap Finance Posts INR 5.6 Cr Profit In First Year Of Operations-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Kunal Shah’s Newtap Finance Posts INR 5.6 Cr Profit In First Year Of Operations-Inc42 Media
Kunal Shah’s Newtap Finance Posts INR 5.6 Cr Profit In First Year Of Operations-Inc42 Media
You’re in Good company