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

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

Funding Details and Participants

The funding round, which comprised a combination of primary and secondary transactions, witnessed participation from both new and existing investors. Notable contributors include TPG Rise Fund, Norwest Venture Partners, Eight Roads Ventures, and Chiratae Ventures. According to RoC filings accessed by Inc42, Fibe raised $65.5 Mn (about INR 546.75 Cr) in primary capital.

Utilization of Capital

Fibe intends to leverage the capital infusion for business expansion, enhancing existing product offerings, and diversifying its impact loans portfolio with bespoke products. Presently, Fibe’s impact loan portfolio encompasses various categories such as healthcare loans, edtech loans, insurance financing, and school fee financing, among others.

Strategic Vision

Commenting on the funding, Fibe’s CEO Akshay Mehrotra expressed the company’s commitment to extending its reach, fortifying technological infrastructure, and deepening its impact across India. Mehrotra emphasized Fibe’s mission to empower individuals with the necessary tools and support for financial well-being.

Growth Trajectory and Financial Performance

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

Prior to this funding round, Fibe had raised $110 Mn in August 2022, under its previous moniker, EarlySalary. The startup’s cumulative funding prior to this round exceeded $140 Mn.

Fibe boasts a robust track record, having disbursed over 6 Mn loans totaling INR 20,000 Crore to more than 25 Mn users since its inception.

In terms of financial performance, Fibe reported a remarkable 9X increase in consolidated net profit to INR 36.3 Cr in FY23, compared to INR 4 Cr in FY22. Operating revenue also surged by 35% year-on-year to INR 414.3 Cr during the same period.

Competitive Landscape and Market Outlook

Fibe operates in a dynamic digital lending market, competing with industry peers such as PaySense, ZestMoney, Slice, Daily Salary, and Refyne. With the Indian digital consumer lending market projected to exceed $720 Bn by 2030, according to Inc42’s ‘State Of Indian Fintech Ecosystem Q3 2023’ report, Fibe is well-positioned to capitalize on this growth trajectory and further consolidate its market presence.

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