Lending Tech Startup Fibe Raises $90 Mn To Diversify Its Loan Portfolio

Lending tech startup Fibe (formerly EarlySalary) has bagged $90 Mn (about INR 750 Cr) in its Series E funding round led by TR Capital, Trifecta Capital and Amara Partner. 

The funding round, which was a mix of primary and secondary transactions, also saw participation from existing investors TPG Rise Fund, Norwest Venture Partners, Eight Roads Ventures and Chiratae Ventures. 

As per the RoC filings accessed by Inc42, the startup raised $65.5 Mn (about INR 546.75 Cr) in primary capital. 

In a statement, Fibe said it would use the capital for business expansion, strengthen existing product lines and to diversify its impact loans portfolio with more tailor-made products. Currently, Fibe’s impact loan portfolio includes categories like healthcare loans, edtech loans, insurance financing, school fee financing, among others.

“With this new capital injection, we are poised to expand our reach, strengthen our technological infrastructure, and deepen our impact across India. Together, we continue to pave the way for a future where every individual has the tools and support they need to thrive financially,” Fibe cofounder and CEO Akshay Mehrotra said. 

Founded in 2015 by Ashish Goyal and Mehrotra, Fibe caters to young working professionals through its app. Its offerings include short-term instant cash loans, long-term personal loans, and buy now, pay later (BNPL) plans. 

The startup last raised $110 Mn in August 2022, when it was still known as EarlySalary, from TPG Growth, Norwest Capital, Piramal Capital and Housing Finance Limited.

Prior to the latest funding round, Fibe had raised over $140 Mn in total funding.

Since its inception, the startup claims to have disbursed more than 6 Mn loans worth INR 20,000 Crore to over 25 Mn users.

Fibe posted a 9X increase in its consolidated net profit to INR 36.3 Cr in the financial year 2022-23 (FY23) from INR 4 Cr in FY22. Operating revenue jumped 35% year-on-year to INR 414.3 Cr during the year under review. 

Fibe competes with the likes of PaySense, ZestMoney, Slice, Daily Salary, and Refyne in the country’s rapidly-growing digital lending market. As per Inc42’s ‘State Of Indian Fintech Ecosystem Q3 2023’ report, the Indian digital consumer lending market is projected to surpass the $720 Bn mark by 2030.