Lending Tech Startup Fibe Raises $35 Mn To Enhance Product Suite

SUMMARY

Fibe raised the funding from International Finance Corporation (IFC) as part of its Series F round

The startup plans to use the capital to build a unified platform for lending, saving, investing, and payments

Fibe offers short-term and long-term loans between INR 5,000 to INR 5 Lakh

Digital lending startup Fibe has raised $35 Mn (about INR 314 Cr) from International Finance Corporation (IFC) as part of its Series F round.

The startup plans to use the capital to accelerate product innovation and build a unified platform for lending, saving, investing, and payments.

“… This capital will help us enhance our product suite further and deliver a unified experience across borrowing, saving, investing, and payments — while remaining focused on responsible credit and positive socio-economic outcomes,” said Fibe founder, MD and group CEO Akshay Mehrotra.

Founded in 2015 by Mehrotra and Ashish Goyal, Fibe offers short-term and long-term loans to the salaried class of the nation. Users can avail loans between INR 5,000 to INR 5 Lakh. The startup’s offerings include personal loans, loans against mutual funds, medical loans, education loans, solar loans, instant salary advances, and more.

The startup claims to have a footprint spread across over 940 cities in India, with over 8,500 partner centres and more than 50 channel partners. It has disbursed over 9 Mn loans to date.

In August, Fibe raised INR 225 Cr (about $25 Mn) debt from a host of financial institutions, including Franklin Templeton Alternative Investments Fund, India.

Overall, the startup said it has raised more than $266 Mn equity funding, including secondaries, from investors like TPG’s The Rise Fund, Norwest Venture Partners, Eight Roads Ventures, TR Capital, Piramal Finance, and Chiratae Ventures.

According to the standalone financial statements of Fibe’s NBFC arm EarlySalary Services Pvt Ltd, its operating revenue jumped 170% to INR 704 Cr in FY24 from INR 261 Cr in the previous financial year. It recorded a profit after tax of INR 55 Cr during the year as against a loss of INR 10 Cr in FY23.

Fibe competes with the likes of PaySense, ZestMoney, Daily Salary, and Refyne in the country’s lending tech space. The sector is poised to become a $1.3 Tn opportunity by 2030.