UGRO Capital Reports ₹421.8 Cr Income in Q1 FY26; PAT Up 12%, AUM Crosses ₹12,000 Cr

• AUM of INR 12,081 Cr, up 31% YoY
• Total Income stood at INR 421.8 Cr in Q1’FY26, up 40% YoY
• Net Total Income at INR 216.5 Cr, up 31% YoY
• GNPA/NNPA at 2.5%/1.7% on total AUM
• Embedded Finance Growth: Reached INR 1,011 Cr AUM with INR 582 Cr disbursed in Q1’FY26 through MSL platform
• Emerging Market Business Growth: Reached INR 2,772 Cr AUM with 309 branches operational; ~346 branches to be operational by Sep’25
• CRAR at 22.4%, provides strong capital headroom above the regulatory minimum, supporting calibrated growth
• Strategic actions: Profectus Capital acquisition (INR 1,400 Cr, all-cash) advancing; INR 381 Cr rights issue completed and INR 911 Cr preferential issue in process

UGRO Capital Limited (“UGRO” or “the Company”), a DataTech NBFC focused on MSME lending, announced its financial performance for the quarter ended June 30, 2025 (Q1’FY26). The Company sustained healthy year-on-year growth and a stable risk profile, while reinforcing structural growth engines of branch expansion in Emerging Markets, scale in Embedded Finance, and progress on the Profectus Capital acquisition and ongoing equity raise. Continuing its journey toward becoming the largest small business financing institution driven by data and technology, the Company reported Assets Under Management (AUM) of INR 12,081 crore as of June 30, 2025, reflecting a 31% YoY growth.

The Emerging Market Business continued to scale with 309 operational branches and a path to ~346 branches by September 2025, supported by improving branch-vintage profitability. The Embedded Finance platform crossed INR 1,000 Cr AUM; Q1 disbursements were INR 582 Cr, with strong contributions from partners such as PhonePe and BharatPe. In parallel, the Company advanced the INR 1,400 Cr all-cash acquisition of Profectus Capital (shareholder approval received; change-of-control and allied approvals in process) and continued its capital raise programme (INR 381 Cr rights issue completed; INR 911 Cr preferential issue in progress), further strengthening the balance sheet for quality growth.

UGRO Capital continued to diversify liabilities and improve the cost of funds during the quarter. Total debt stood at INR 7,586 Cr as of June 30, 2025, with CRAR at 22.4%, and the off-book share at 42% supported by co-lending and direct assignment flows. The partner ecosystem remains deep and data linked with 17 Co-lending partners, 50+ lenders and 770+ GRO partners and Green anchor partners, enabling tailored credit for over 2 lakh MSMEs across India.

In terms of financials, Total Income for Q1’FY26 stood at INR 421.8 Cr, up 40% YoY and 2% QoQ; Net Total Income was INR 216.5 Cr, up 31% YoY and PAT was INR 34.1 Cr, up 12% (YoY). Portfolio quality remained stable with GNPA/NNPA at 2.5%/1.7% on total AUM.

UGRO reported Disbursement of INR 1,599 Cr in Q1’FY26. First Quarter of any Financial Year is seasonally softer, and by design, the Company prioritized discipline over pace. Underwriting filters were tightened particularly on borrower leverage resulting in calibrated originations. Draft co-lending guidelines issued in April weighed on volumes temporarily; the effect was cushioned by higher direct assignments and continued liability diversification. With the Emerging Market network nearing full rollout and embedded-finance funnels strengthening, momentum is expected to improve from Q2 while keeping asset quality at the center.

Speaking on the performance, Mr. Shachindra Nath, Founder and Managing Director of UGRO Capital, said, “Q1 was a quarter of discipline. In line with our risk guardrails, we tightened underwriting and moderated originations wherever borrower leverage was elevated. Even so, the portfolio remained resilient across our nine focus sectors, and we delivered 31% YoY AUM growth with stable asset quality. We stayed focused on building our next engines of Emerging Market distribution, Embedded Finance partnerships and the Profectus acquisition. With capital actions underway and approvals progressing, we are well placed for the next phase of high-quality growth. While the industry is seeing relatively higher stress in unsecured segments, UGRO’s exposure there is limited and ring-fenced; our book is predominantly secured, and our filters are sharper than before. As seasonal effects fade and partner funnels ramp up, we expect growth to pick up while staying firmly disciplined on unit economics."

About UGRO Capital Ltd (NSE: UGROCAP I BSE: 511742)

UGRO Capital Limited is a DataTech Lending platform, listed on NSE and BSE, pursuing its mission of “Solving the Unsolved” for the small business credit gap in India, on the back of its formidable distribution reach and its Data-tech approach.

The Company’s prowess in Data Analytics and strong Technology architecture allows for customized sourcing platforms for each sourcing channel. GRO Plus module which has uberized intermediated sourcing, GRO Chain, a supply chain financing platform with automated end-to-end approval and flow of invoices, GRO Xstream platform for co-lending, an upstream and downstream integration with fintechs and liability providers, and GRO X application to deliver embedded financing option to MSMEs.

The credit scoring model GRO Score (3.0) a statistical framework using AI / ML driven statistical model to risk rank customers is revolutionizing the MSME credit by providing on-tap financing like consumer financing in India.

UGRO has executed Co-lending model in India which is prevalent in the West through Co-Lending relationships with total of 17 Banks and NBFCs and built a sizeable off-balance sheet asset of 42% of its AUM through its Co-lending and Co-originating partners and GRO Xstream platform.

The Company is backed by marquee institutional investors (raised INR 900+ Cr of equity capital in 2018, INR ~340 Cr in 2023, INR ~258 Cr in 2024 and INR ~1300 in 2025). For more information, please visit: http://www.ugrocapital.com

UGRO Capital to Acquire Profectus Capital in a ₹1,400 Cr All-cash Deal

UGRO Capital Limited (NSE: UGROCAP | BSE: 511742), a leading DataTech NBFC focused on MSME lending, today announced a significant development that underscores its commitment to empowering the MSME ecosystem through tailored, embedded financial solutions and expanding its Emerging Market business reach. UGRO Capital has executed a Share Purchase Agreement with the existing shareholders of Profectus Capital Private Limited ("Profectus") to acquire 100% of the shares of Profectus.

This all-cash deal, with the consideration payable in a single tranche at closing shall mobilize proceeds from UGRO's recently announced equity raise, will deploy capital into a fully secured asset portfolio delivering instant scale benefits with zero origination costs, making Profectus a wholly owned subsidiary. We estimate that this acquisition would add approximately ₹ 150 Crores of annualized profit to UGRO making it a capital adequacy accretive transaction.

The acquisition strategically enhances four core NBFC pillars: Immediate 29% AUM growth diversifies the combined portfolio to accelerate high-yield Emerging Markets and Embedded Finance expansion, while adding School Financing with incremental ₹2,000 Crores medium-term potential, as per our assessment. We estimate significant geographic and product alignment in Secured LAP, Machinery Finance, and Supply Chain Finance which we believe will drive operational efficiencies, generating ₹115 Crores cost savings and adding incremental profitability of ₹150 Crores thus boosting ROA by 0.6-0.7% once a post-acquisition merger is complete. The combined entity's strengthened asset mix features higher secured assets, thereby providing further impetus to scale Emerging Market and Embedded Finance businesses.

Profectus has demonstrated stable portfolio expansion, building its assets under management to ₹3,468 Crores as of March 2025, with presence across seven states through a 28-branch network and over 800-member team, all while maintaining a gross NPA of 1.6% and Net NPA of 1.1%. Its complementary businesses in secured lending perfectly align with UGRO's data-driven underwriting platform. To facilitate the discharge of purchase consideration for the proposed acquisition, the Company is proposing to add financing of Profectus’ acquisition as an object of the existing preferential issuance of compulsorily convertible debentures by seeking fresh approval from the board and shareholders.

The acquisition is expected to close on fulfilment of customary conditions, including receipt of RBI/shareholder approvals.

Both entities will maintain current operations and strategy during integration.

Reflecting on this acquisition, Mr. Shachindra Nath, Founder and Managing Director of UGRO Capital, said, “This strategically priced acquisition deploys our equity raise to achieve instant scale and ₹115 Crores cost savings and annualized incremental profitability of ₹ 150 Crores thus boosting ROA by 0.6–0.7%. Integrating Profectus' school finance expertise unlocks ₹2,000 Crores growth potential and strengthens our secured asset mix – accelerating our journey to become India's largest MSME lender through enhanced Emerging Markets and Embedded Finance capabilities.”

Mr. K.V. Srinivasan, Executive Director & CEO, Profectus Capital, added, “The coming together of the two organisations would be beneficial owing to the synergies and complementarity of the businesses, which should result in greater operational efficiency and profitability for the business. We at Profectus, thank our investors for their unwavering commitment and support throughout our journey, which has helped us to establish a very strong process-oriented business with an excellent portfolio quality.”

With this strategic acquisition, UGRO Capital reaffirms its commitment to driving inclusive economic growth and empowering MSMEs across India, leveraging combined synergies to expand high-yield offerings while maintaining portfolio quality.

InCred Capital acted as the exclusive advisor to UGRO Capital on this acquisition transaction. SNG & Partners was engaged as the legal counsel to the Company. The Company engaged PriceWaterHouse Coopers Services LLP for financial due diligence and Legacy Growth Partners for tax due diligence for the transaction.

UGRO Capital Announces ₹400 Cr Rights Issue at ₹162 Per Share

UGRO Capital, India’s leading DataTech driven MSME Financing NBFC, today announced that its Securities Allotment & Transfer Committee has approved the final terms of its Rights Issue. This decision follows the Board’s May 20, 2025, announcement of a ₹915 Crore preferential CCD issuance and a concurrent proposal to offer up to ₹400 Crore on a rights basis to existing public shareholders.

Under the approved terms, UGRO Capital will offer new equity shares totalling up to ₹400 Crore at a price of ₹162 per share. This pro-rata offering ensures that all existing public shareholders have a fair opportunity to maintain their stake and guard against dilution as the Company continues to expand its balance sheet and deepen its DataTech advantage in serving India’s underserved MSMEs.

Commitments totalling over ₹250 Crore—including ₹150 Crore from IFU (Investment Fund for Developing Countries, Denmark), and ₹34 Crore from the Promoter, Promoter-group and employees in rights issue, underscore strong institutional and management confidence in UGRO’s strategy. The Rights Issue builds on the Company’s recent performance, which saw Assets Under Management grow to ₹12,003 Crore and profit before tax more than double to ₹203 Crore in FY 2024–25, while maintaining a healthy capital adequacy ratio.

Mr. Shachindra Nath, Founder & Managing Director of UGRO Capital said, “At UGRO Capital, we are consistently adding ₹3,000 Crore in AUM year-on-year. Given the strong growth momentum and steady portfolio quality we are witnessing, this capital raise would ensure that our growth trajectory remains unhindered. By offering every shareholder the opportunity to subscribe at ₹162 per share which is in line with the pricing of preferential allotment of CCD we are ensuring that Public Shareholders have the opportunity to participate in the growth journey of the company as well. Our growing AUM and profitability, coupled with a strengthened capital adequacy ratio post this infusion, position UGRO to scale its credit delivery and support the financial needs of small businesses across India.”

InCred Capital is serving as our financial advisor and SNG & Partners as our legal advisor for this Rights Issue as well as our previous equity capital raise.

About UGRO Capital Ltd (NSE: UGROCAP I BSE: 511742)

UGRO Capital Limited is a DataTech Lending platform, listed on NSE and BSE, pursuing its mission of “Solving the Unsolved” for the small business credit gap in India, on the back of its formidable distribution reach and its Data-tech approach.

The Company’s prowess in Data Analytics and strong Technology architecture allows for customized sourcing platforms for each sourcing channel. GRO Plus module which has uberized intermediated sourcing, GRO Chain, a supply chain financing platform with automated end-to-end approval and flow of invoices, GRO Xstream platform for co-lending, an upstream and downstream integration with fintechs and liability providers, and GRO X application to deliver embedded financing option to MSMEs.

The credit scoring model GRO Score (3.0) a statistical framework using AI / ML driven statistical model to risk rank customers is revolutionizing the MSME credit by providing on-tap financing like consumer financing in India.

UGRO has executed Co-lending model in India which is prevalent in the West through Co-Lending relationships with total of 17 Banks and NBFCs and built a sizeable off-balance sheet asset of 42% of its AUM through its Co-lending and Co-originating partners and GRO Xstream platform.

The Company is backed by marquee institutional investors (raised INR 900+ Cr of equity capital in 2018, INR ~340 Cr in 2023 and INR ~1,265 Cr in 2024) and aims to capture 1% market share over the next three years. For more information, please visit: http://www.ugrocapital.com/

Capri Global Selects Girnar Finserv's InsurTech Platform, Heph, As Its Technology Partner

• Capri anticipates reduced policy issuance time by 80% with multi-insurer product comparison suiting their customer needs

Heph, India's largest Insurance SaaS Platform and a Girnar Finserv Entity has announced its partnership with Capri Global Capital Ltd known by the brand name Capri Loans, one of the leading NBFCs known for its innovative approach to lending and financial services in India. Capri has chosen Heph as its technology partner owing to its comprehensive white-label Insurance SaaS platform tailored to BFSI needs.

Through this collaboration, Capri Loans will seamlessly embed insurance products across its lending ecosystem, including the introduction of a Group Health Insurance product and other insurance product as per the customer requirements and choice. Having integrated Heph’s multi-insurer, multi-channel capabilities, Capri Global will offer customized third party insurance solutions directly within its loan products, driving a new revenue stream while enhancing customer value.

How Capri Loans Benefits from Heph’s Insurtech Solutions:

• Seamless White-Label Integration: Heph’s API-driven, fully customizable platform enables Capri Loans to embed insurance within its existing digital ecosystem to be obtained by customers at their option, ensuring a frictionless experience for customers and sales teams alike.
• Multi-Insurer, Multi-Channel Capability: Capri Loans can now offer a diverse range of insurance products, including custom-created products (Motor, Health, Life, Group), through various distribution channels including Assisted, D2C, and Embedded, enhancing cross-sell opportunities.
• Custom Workflows for Optimized Operations: The platform is tailored to Capri Loan’s operational needs, automating policy issuance, claims processing, and compliance workflows to ensure smooth execution at scale.
• Reduced Policy Issuance Time by 80%: Heph’s advanced automation tools drastically cut down processing time, enabling issuance of policies in minutes rather than days.
• Comprehensive Backend Management: The platform consolidates operations, including policy administration, invoice management, IRDAI compliance, and reporting, ensuring complete regulatory adherence.
• Enterprise-Grade Security: With SOC2 and ISO-certified security protocols, Capri Loans benefits from best-in- class data protection and encryption standards.

Ayush Bagmar, Business Head of Heph, said, “At Heph, we are reimagining the way insurance is distributed by enabling financial institutions to introduce the right insurance products to the right audience. Our partnership with Capri Global furthers this vision. By leveraging Heph’s white-label, full-stack platform, Capri Global can now scale its offerings and drive meaningful engagement through its platform”

Magesh Iyer, Chief Operating Officer at Capri Global Capital Ltd added, “Offering our customers a wide array of insurance solutions that fits their requirement is an important objective for us. We also understand that beyond offering the right solutions, the experience of the same has to be customer oriented. This partnership enables us to reimagine the entire customer journey. Heph’s platform, a one stop shop for all insurance needs will accelerate our growth and help us serve our customers better.”

With Heph as its insurtech partner, Capri Loans is set to unlock new growth opportunities, boost policy issuance speed, and drive significant revenue expansion through insurance cross-sell, potentially increasing revenue The partnership marks a pivotal step in digitizing insurance distribution in the BFSI sector, setting new benchmarks for operational excellence and customer-centric financial solutions.

Credit Saison India Raised $150 Mn in ECB from Mizuho Bank

Credit Saison India (“CS India”), a leading non-banking financial company and the Indian subsidiary of Japan’s Credit Saison Co., has secured External Commercial Borrowing (ECB) funding of USD 150 million from Mizuho Bank Ltd. under a bilateral arrangement. This development follows Mizuho Bank’s equity investment for a 15% stake in CS India, with an investment of USD 145 million in 2024 which further deepens the strategic relationship between the two financial institutions. The equity stake marked Mizuho Bank’s strategic entry into the Indian market via Credit Saison India, and this latest ECB investment further strengthens that long-term partnership.

This transaction is funded through Mizuho’s GIFT City branch with a 5-year tenor that adds to Credit Saison India’s robust funding mix and enhances its long-term financial resilience. In April, Credit Saison India had secured a syndicated loan of USD 200 million with the participation of Axis Bank (India), DBS Bank (Singapore), and CTBC Bank (Taiwan), and raised another USD 100 million ECB from a major Indian bank. The latest bilateral ECB of USD 150 million from Mizuho Bank further builds on this momentum and enhances the company’s diversified funding base, bringing its total ECB facility to USD 450 million within a single quarter.

Credit Saison India has been diversifying its funding sources through the issuance of bonds and commercial papers, alongside borrowings from over 35 local financial institutions supported by its AAA long-term ratings from CRISIL and CARE. The recent ECB further bolsters the funding strategy, and allows access to capital from international banks and institutions.

This growing pool of funding enables CS India to support a wider range of borrowers through its co-lending platform and significantly expand its direct lending operations, especially in MSME and secured lending segments.

Ms. Presha Paragash, Whole Time Director & CEO of Credit Saison India, said “Mizuho Bank has been a strategic partner in our journey and chose Credit Saison India as its platform to enter the Indian lending market through equity participation. Over the past few years, the partnership has only deepened - now spanning equity, debt, and ECB support. This ECB transaction, after their equity investment in 2024, demonstrates deep conviction in our growth model and long-term potential in India. It also reflects the strength of our multi-product, multi-vertical focused business strategy, and gives us the power to accelerate our plans to scale the business and expand our pan-India footprint.”

Mr. Anudeep Ganguli, Chief Treasury Officer of Credit Saison India, added, “With the latest ECB facility, Mizuho Bank now supports Credit Saison India across the capital stack, debt, equity, and now external commercial borrowings. This is not only a vote of confidence in our business fundamentals and governance but also a significant milestone that firmly anchors our partnership strategically for the long-term. There is a deep alignment of vision and commitment for India together as we move forward our strategy of building a diversified, cost-efficient funding base to remain resilient in today’s evolving macro-environment.”

Mr. Masaaki Kaneko, Senior Managing Director / India Co-Country Head, India Corporate Banking Department from Mizuho Bank commented, “We believe in Credit Saison India’s robust, tech-driven lending model and its vision to promote financial inclusion at scale. We are confident in the company’s growth trajectory, leadership, market potential and governance practices. India continues to remain an important geography for us and we are committed to supporting the aspirations of the growing economy. Driven by strong economic fundamentals, rapid digital adoption, and a large underserved credit market, India presents one of the most compelling long-term opportunities in the global financial landscape.”

Through these efforts, Credit Saison India continues to strengthen its financial foundation to withstand interest rate fluctuations and macroeconomic shifts, while expanding its outreach to individuals and MSMEs in need of credit.

As part of the broader Saison Group, the company is also committed to advancing global financial inclusion by sharing its learnings from India across other emerging markets, including Brazil and Mexico.

About Credit Saison India:

Credit Saison India is a fast-growing non-banking financial company (NBFC) focused on wholesale, MSME, and consumer lending. CS India is backed by parent entity Credit Saison Japan (a Tokyo Stock Exchange-listed financial services firm) and is an Affiliate Company of Mizuho Bank, Japan. CS India has an AUM of over USD 2 billion with over 2 million active loans. The company leverages technology-driven financial solutions and its extensive network of 60+ branches to drive inclusion and growth in the Indian lending ecosystem. Established in 2018, Credit Saison India now has over 1,300 employees across India (registered name: Kisetsu Saison Finance India Pvt Ltd is a CRISIL AAA & CARE AAA rated NBFC registered with RBI).

About Credit Saison and Saison International

Credit Saison Company Limited (CS Japan), founded in 1951, has an established franchise in Japan’s consumer and SME finance space. Credit Saison is listed on the Tokyo Stock Exchange and as a group has a Balance Sheet of approx USD 30B. Recognized as one of Japan’s top credit card issuers, Credit Saison has evolved into a diversified financial services provider with a global presence across payments, finance, and lending. Saison International is Credit Saison’s international headquarters in Singapore that oversees all of Credit Saison’s Global Business divisions. It currently operates in Singapore, India, Indonesia, Vietnam, Thailand, Mexico and Brazil.

Credit Saison India Raises Record $300 Mn in Maiden ECB Issuance

• Raised maiden ECB of USD 300 million, reflecting growing investor confidence
• Syndicated facility of USD 200 million from leading Asian financial institutions, including the USD tranche from Axis Bank, DBS Bank, and JPY tranche from CTBC Bank; USD 100 million from a Public Sector Bank
• Aims to accelerate business expansion, support a growing customer base, and uphold financial resilience.

Credit Saison India, a leading non-banking financial company (NBFC), has secured USD 300 million through its maiden syndicated & bilateral External Commercial Borrowings (ECB) to drive growth. This milestone marks Credit Saison India's first external fund-raise to expand business operations, drive digital transformation, and enhance customer acquisition.

The multi-currency issuance – one of the largest borrowings for a first-time issuer – includes USD 200 million raised through a syndication deal with Axis Bank, DBS Bank and CTBC Bank, reflecting strong support from leading financial institutions. Additionally, a further USD 100 million ECB has been secured from a Public Sector Bank on a bilateral basis.

Credit Saison India was granted its NBFC license in 2019, marking the beginning of its journey in India’s financial sector. Initially focused on wholesale lending and strategic tech-driven partnerships with leading NBFCs and fintechs, the company quickly diversified into embedded finance, offering seamless credit solutions to consumers through platform partnerships. Alongside this, Credit Saison India expanded its direct lending operations to MSMEs, supported by a rapidly growing physical presence that now spans 60+ branches across the country.

In just five short years, Credit Saison India has achieved remarkable scale—building a portfolio of 2+ million active loans, an AUM about USD 2 billion, and a team of over 1,300 employees. This rapid growth is a testament to the strength of the company$B!G(Bs operations, the expertise of its management team, and the unwavering confidence of its investors.

Ms. Presha Paragash, Whole Time Director & CEO of Credit Saison India, said, "The successful ECB syndication highlights our robust growth and marks a pivotal step in our expansion journey. The capital will accelerate our India-focused strategy, driving growth in wholesale lending, co-lending partnerships, and direct lending products. We're doubling down on our presence by expanding beyond our 60+ branches to serve more customers nationwide, growing our secured lending portfolio for sustainable diversification and strengthening partnerships with fintechs and NBFCs. As a trusted lender, we remain committed to financial inclusion through innovation and responsible growth, reinforcing our position as a leading NBFC in India's underserved credit markets."

Kosuke Mori, CEO of Saison International, the international headquarters of Credit Saison, responsible for the global businesses of the group outside of Japan, said, "This latest ECB issuance, the first for Credit Saison India, marks a significant milestone in our global expansion journey and our commitment to grow our presence in India. It also reflects the rising confidence of leading financial institutions in our strategy for resilient, scalable growth across markets, and operational capabilities, with India in focus. We look forward to deepening our partnerships with our investors as we work toward our vision of being a global lender in underserved markets where access to capital can significantly drive financial inclusion at scale."

Mr. Anudeep Ganguli, Chief Treasury Officer of Credit Saison India, added, "BSecuring funding from top lenders underscores their trust and confidence in Credit Saison India$B!G(Bs business model and long-term strategy. By diversifying our funding sources, we are able to optimise and expand our loan book while ensuring a sustainable and cost-effective funding base as we continue our business growth. This multi-party, multi-currency transaction is a significant step towards further liability diversification and ensuring financial resilience."

The ECB funding is aimed to bolster Credit Saison India’s ability to scale the assets under management and further its mission of enhancing credit accessibility for underserved segments. This capital infusion aligns with the company$B!G(Bs long-term vision of becoming a leading, diversified lending franchise in India.

L&T Finance Ltd. Announces Jasprit Bumrah As Their Brand Ambassador

L&T Finance Limited (LTF), one of the leading Non-Banking Financial Company (NBFC), today, has named renowned Indian cricketer Jasprit Bumrah as its brand ambassador. This partnership marks an exciting chapter for LTF in its ongoing efforts to expand and strengthen its brand presence and engage its diverse customer base spread across the length and breadth of the country.

Jasprit Bumrah will feature prominently in LTF's comprehensive Above The Line (ATL) and Below The Line (BTL) marketing campaigns, spanning a variety of channels. These campaigns are strategically designed to elevate brand awareness and drive customer engagement, highlighting the diverse portfolio of financial products and services currently offered by LTF.

Speaking on this occasion, Ms. Kavita Jagtiani, Chief Marketing Officer at L&T Finance said, "We are delighted to welcome Jasprit Bumrah, one of India's most iconic sports figures, to the LTF family as our brand ambassador. This partnership directly aligns with one of our core pillars, i.e., heightened brand visibility. Bumrah's stellar performance has propelled him to household name status, making him an instantly recognizable and respected figure. His unwavering discipline and commitment to cricket, fostering deep trust, make him an ideal persona for the LTF brand.”

“His humbleness and relatable nature are visible both on and off the field. This universal appeal extends to his versatility and enables us to connect seamlessly with people from all walks of life. Bumrah perfectly embodies the values of our company, reflecting our dedication to excellence and customer-centricity. Therefore, this collaboration is not just a partnership but a powerful alignment of values and vision, driving us towards greater success,” added Ms. Jagtiani.

Mr. Jasprit Bumrah, exclusively managed by RISE Worldwide, said, “I am excited to associate with L&T Finance, a brand renowned for its strong legacy, excellence, and commitment. I look forward to being a part of this wonderful journey.”

LTF is one of the leading financiers in Rural Business Finance, Farm Equipment Finance, and Two-wheeler Finance. LTF's significant presence in urban finance is particularly noteworthy. By providing accessible and tailored financial solutions to urban and rural communities, LTF empowers individuals and families to achieve their financial goals.

As per data for the quarter ended December 31, 2024, the Company's market leadership is underpinned by its extensive reach into approximately 2 lakh villages, facilitated by a strong retail franchise that includes 2,028 rural branches, 185 urban branches, and over 12,500 distribution touch points.

The partnership with Bumrah was facilitated by RISE Worldwide, which works closely with players and brands to create meaningful brand extension and unlock value for stakeholders.

About L&T Finance Ltd. (LTF):

L&T Finance Ltd. (LTF) (https://www.ltfs.com), formerly known as L&T Finance Holdings Ltd., is a leading Non-Banking Financial Company (NBFC), offering a range of financial products and services. Headquartered in Mumbai, the Company has been rated ‘AAA’ — the highest credit rating for NBFCs — by four leading rating agencies. It has also received leadership scores and ratings by global and national Environmental, Social, and Governance (ESG) rating providers for its sustainability performance. The Company has been certified as a Great Place To Work® and has also won many prestigious awards for its flagship CSR project – “Digital Sakhi”- which focuses on women's empowerment and digital and financial inclusion. Under Right to Win, being in the ‘right businesses’ has helped the Company become one of the leading financiers in key Retail products. The Company is focused on creating a top-class, digitally enabled, Retail finance company as part of the Lakshya 2026 plan. The goal is to move the emphasis from product focus to customer focus and establish a robust Retail portfolio with quality assets, thus creating a Fintech@Scale while keeping ESG at the core. Fintech@Scale is one of the pillars of the Company’s strategic roadmap - Lakshya 2026. The Company has approximately 2.5 Crore customer database, which is being leveraged to cross-sell, up-sell, and identify new customers.

Shriram Finance Raises Over $500 Mn Equivalent Marking One of the Largest SACE Covered Loan Facility

Shriram Finance Limited (SFL), among the India’s largest NBFC and the flagship company of the Shriram Group, has successfully availed a landmark External Commercial Borrowing (ECB) SACE Push loan facility. This transaction represents the largest SACE, an Italian export credit agency controlled by the Ministry of Economy & Finance, Italy, covered loan facility ever raised by a NBFC in India from SACE, reinforcing SFL’s position as a leader in offshore fundraising and its ability to diversify funding sources strategically.

This 10-year long-tenor facility is backed by SACE, underlines a strong global partnership aimed at promoting the financing of Italian vehicles, both new and used, under SFL’s Social Finance Framework. The transaction saw participation from leading global financial institutions, including HSBC, Deutsche Bank, KfW IPEX-Bank, ING Bankand J.P. Morgan as Mandated Lead Arrangers and Lenders amounting to EUR 393 million and USD 100 million highlighting the strong confidence of international lenders in SFL’s creditworthiness. HSBC acted as the Sole ECA (Export Credit Agency). Coordinator and ING Bank acted as the Social Loan Coordinator for the transaction.

SFL’s collaboration with SACE reaffirms its ability to structure innovative funding solutions that align with its long-term business strategy. The transaction further demonstrates SFL’s agility in tapping offshore financing markets and expanding its lender base to support sustainable business growth.

This milestone highlights SFL's demonstrated ability to tap into international capital markets, effectively optimizing its funding costs while maintaining a diverse funding mix. With this recent transaction, SFL has successfully secured over USD 2.50 billion in offshore funding in the current financial year, the highest by any NBFC in India in structured finance and sustainable funding initiatives.

Commenting on the successful fundraise, Mr. Umesh Revankar, Executive Vice Chairman of Shriram Finance Limited, stated: “This landmark transaction showcases our strong ability to navigate global financial markets and forge strategic partnerships with international lenders. Our association with SACE and leading global banks reinforces the confidence that global financial institutions have in SFL’s vision and operational strength. This facility not only enhances our ability to provide financing for Italian vehicles and equipment’s but also strengthens our commitment to financial inclusion and economic development.”

Gautam Bhansali, Head-India & South Asia of SACE stated: “Our relationship with Shriram Finance has only strengthened since 2019 when we executed our first Push Facility and since then over € 100 Mn equivalent of Italian products have been supported by them. This new unique facility is expected to further strengthen our partnership as we simultaneously support Italian excellence and Social activities of Shriram Finance in India.”

Mr. Ajay Sharma, Head of Banking, HSBC India, said, "We are delighted to work alongside SFL to arrange this landmark SACE-backed financing facility, further enhancing our relationship with them and reinforcing HSBC’s strong capabilities as a global ECA arranger. This transaction marks our fourth SACE-backed deal in India in the past 12 months, underscoring our commitment to supporting Indian clients and our strong relationship with the Italian ECA, which spans more than four decades.”

This transaction aligns with SFL’s strategic focus on expanding its lender base and accessing diversified pools of capital to support its mission of empowering small business owners and individuals with responsible financial solutions. By leveraging global partnerships, SFL continues to lead the way in mobilizing sustainable capital for India’s growth and development.

Bajaj Finance Secures $400 Mn Loan From IFC to Support Women Micro-Entrepreneurs/Borrowers and Boost EVs Sales

The International Finance Corporation (IFC), a member of the World Bank Group, has committed a $400 million loan to Bajaj Finance to boost electric vehicle (EV) sales and support energy-efficient consumer goods in India. This funding is part of Bajaj Finance's $1 billion fundraising plan.

This funding is part of Bajaj Finance's $1 billion fundraising plan and aims to increase competitiveness in the climate finance market, support India's climate goals, and promote financial inclusion.

The loan aims to expand access to finance for customers purchasing EVs, including two-wheelers, three-wheelers, and four-wheelers, as well as energy-efficient appliances.

The initiative also focuses on supporting women-owned microenterprises and women micro-borrowers. The funding will promote financial inclusion by ensuring that more women have access to the necessary resources to start and expand their businesses.

This partnership is expected to quadruple Bajaj Finance's climate loan portfolio to $600 million by 2027, contributing to India's net-zero goals.

The funding will increase competitiveness in the climate finance market and promote financial inclusion.

Sandeep Jain, CFO & COO of Bajaj Finance, highlighted that responsible business practices driven by their ESG principles are foundational to their operations.

Imad N Fakhoury, Regional Director for South Asia at IFC, mentioned that accelerating climate financing is crucial for India to meet its net-zero goals and that this investment will inspire other NBFCs and investors to expand their financing for energy-efficient solutions, e-mobility, and microfinance.

SBI Unveils Its First Co-Lending CPC

Shri. Surender Rana DMD (ASF), SBI inaugurated State Bank of India’s first co-lending Centralised Processing Cell (CPC) at Nariman Point, Mumbai. The CPC is a dedicated unit for co-lending business of NBFCs.

In order to have seamless operations of specialized activity under Co-lending, a dedicated Centralised Processing Cell (CPC) for Processing & Sanctioning of Loans is setup by the Banks.

The NBFCs under the Co-Lending Model sources the loan proposals from all locations in India and forwards to the Bank from their Centralized Location. On behalf of the Bank, CPC undertakes Loan proposals Acceptance, Disbursement, Monitoring and Reconciliation.

The inauguration ceremony witnessed the presence of SBI dignitaries, Shree. Shantanu Pendsey CGM (ABU & GSS) and Smt. Salila Pande CGM MMR. Other dignitaries from the corporate centre and NBFC teams of NIDO Home Finance and Ugro Capital Ltd. were present as well.

The inauguration of co-lending CPC is a step towards demonstrating SBI’s commitment to growing its co-lending book with a focus on safety and sustainability.

This commitment is in line with SBI's ongoing efforts to support MSMEs and the under-served population where the bank has made significant strides in FY24. To strengthen support to MSMEs having little or no access to formal credit, SBI has entered into a co-lending agreement with 9 NBFCs. Further, to dedicatedly continue reaching out to the unserved and under-served populace, the bank has signed MoUs with 23 NBFCs/HFCs under co-lending model.

The inauguration of the co-lending CPC reflects SBI’s determination to grow the co-lending book in a safe way and reiterates the bank’s dedication towards welfare of MSMEs and under-served population.

Tata Sons Pays $2.39 Bn Debt to Dodge Mandatory Listing on Stock Exchange

Tata Sons, the $410-billion holding company of the Tata Group, voluntarily surrendered its certificate of registration to the Reserve Bank of India (RBI) after repaying over ₹20,000 crore (~ US $2.39 billion) in debt. By doing so, Tata Sons remains an unlisted entity and can continue operating as a closely held company without listing its shares on the stock exchange, as mandated by RBI regulations.

This strategic move allows Tata Sons to maintain its status while significantly reducing its liabilities.

Dodging the mandatory listing allows Tata Sons to remain unlisted and retain control over its operations. Listing requirements come with additional costs (such as compliance, reporting, and transparency) that the company can now avoid.

In September 2022, the RBI classified Tata Sons as a Non-Banking Financial Company – Upper Layer (NBFC-UL). According to RBI regulations, NBFC-ULs are required to list their shares on a stock exchange within three years of this classification.

The RBI’s revised regulations mandated that large non-banking finance companies (NBFCs) must list their shares on a stock exchange within three years. For Tata Sons, this meant they needed to be listed by September 202512.

By repaying the debt and surrendering its certificate of registration, Tata Sons could avoid the mandatory listing requirement and continue operating as a closely held company.

Tata Sons is the principal investment holding company and promoter of the Tata Group. The Tata Group is a vast conglomerate with numerous companies across various sectors. Here are some of the major companies within the Tata Group — Tata Consultancy Services (TCS), Tata Motors, Tata Steel, Tata Power, Titan Company, Tata Consumer Products, Tata Chemicals, Tata Communications, Indian Hotels Company Limited (Taj Hotels), Voltas, Trent (Operates retail chains like Westside), Tata Projects, Air India, and acquired-startups like BigBasket and 1mg.

These companies operate independently under the guidance and supervision of their own boards of directors.

RBI Tightens P2P Lending Rules As Several Lending Platforms Violating Norms

The Reserve Bank of India (RBI) has recently tightened regulations for peer-to-peer (P2P) lending platforms to enhance transparency and protect investors.

The Central Bank has reviewed and updated the Master Direction for Non-Banking Financial Company – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017.

According to the recent circular, RBI said some of the entities adopted certain practices which are in violation of its regulations. “Such practices include, among others, violation of the prescribed funds transfer mechanism, promoting peer-to-peer lending as an investment product with features like tenure-linked assured minimum returns, providing liquidity options and at times acting like deposit takers and lenders, instead of being a platform,” it said.

The original master direction on NBFC – P2P lending platform (Reserve Bank) Directions, 2017, laid out clear rules for the operation of P2P lending platforms which serve as intermediaries in facilitating online transactions between lenders and borrowers.

However, RBI said it observed deviations from these rules, including violations related to funds transfer mechanisms, promoting P2P lending as an investment product, and practices resembling deposit-taking. To address these concerns, RBI revised and clarified several provisions of the directions

Here are the key changes, RBI has made

1. Credit Risk Prohibition: P2P platforms are now prohibited from assuming any credit risks. 

2. No Credit Enhancements or Guarantees: These platforms cannot offer credit enhancements or provide guarantees.

3. Investment Cap: Individual lenders are restricted from investing more than ₹50 lakh cumulatively through P2P platforms.

4. Disclosure Requirements: Platforms must disclose any losses borne by lenders on principal or interest.

5. Prohibition on Cross-Selling: P2P platforms cannot cross-sell insurance products related to credit enhancement or guarantees.

These updates aim to create a safer and more transparent environment for both lenders and borrowers.

Jio Financial Services Gets the RBI Approval to Convert from a NBFC to a Core Investment Company

Jio Financial Services has received approval from the Reserve Bank of India (RBI) to transition from a Non-Banking Financial Company (NBFC) to a Core Investment Company (CIC). This change follows the demerger of Reliance Industries' financial services division.

The company informed the exchanges that it has received approval from the Reserve Bank of India for converting into a "Core Investment Company" from a "Non-Banking Financial Company" (NBFC). It was in November, last year, when Jio Financial Services had applied to the RBI to convert the company from an NBFC to a Core Investment Company. It had made this disclosure to the exchanges on November 21, 2023.

A CIC is a specialized NBFC with assets larger than ₹100 crore, primarily responsible for purchasing shares and securities subject to specific restrictions. At least 90% of a CIC's net assets must be invested in bonds, debentures, equity shares, preference shares, debt, or loans made to group firms.

As a CIC, Jio Financial Services will primarily focus on investments in shares, securities, and other financial instruments. At least 90% of its net assets must be invested in these areas.

CICs are subject to specific restrictions. For instance, they cannot engage in trading activities or provide loans to individuals or entities outside the group. The change allows Jio Financial Services to manage risk differently. As a CIC, it won't engage in regular lending or deposit-taking activities, reducing certain risks associated with traditional NBFCs.

CICs are typically part of a larger group of companies. Jio Financial Services will continue to be closely linked to the Reliance Industries group.

Jio Financial Services must adhere to RBI guidelines for CICs, ensuring compliance with capital adequacy norms and other regulatory requirements.

Besides Jio Financial Services, other companies that have made similar transitions from NBFCs to Core Investment Companies (CICs) in India. Reliance Capital, part of the Reliance Anil Dhirubhai Ambani Group (ADAG), underwent a similar transition. It shifted its focus from traditional NBFC activities to strategic investments as a CIC.

L&T Finance Holdings, a subsidiary of Larsen & Toubro, also made this transition. By becoming a CIC, it streamlined its operations and optimized its investment portfolio.

Bajaj Finserv, a prominent NBFC, diversified its business by converting into a CIC. This move allowed them to concentrate on group investments and strategic financial planning

Fintech CredRight Raises ₹78 Cr in Equity and Debt Financing Round From Michael & Susan Dell Foundation, YourNest and Others to Expand Credit Access for MSMEs

CredRight, a data-driven tech enabled NBFC focused on serving nano enterprises, announces that it has raised funding of INR 78 crore (approximately 9.7 million USD) through a combination of equity and debt capital.

The equity capital funding was led by the Michael & Susan Dell Foundation with wider participation from existing investors including YourNest, Spearhead Capital, 9Unicorns and Accion Venture Lab, signifying strong faith in the company’s value proposition and the founding team’s execution ability. The debt capital funding was provided by Blacksoil, Caspian Debt, RevX Capital, and Westen Capital.

CredRight, which focuses on financial inclusion by providing much-needed institutional debt capital to MSMEs in Tier 3 and 4 towns, will utilise this additional capital to expand further into new locations, strengthen its technology stack and work towards positively impacting the lives of small business owners by helping them access formal finance.

On the fundraise, Neeraj Bansal, cofounder of CredRight, said, “MSMEs are the backbone of the Indian economy and access to capital is the fuel that fires them. We are on a mission to make formal finance simpler, accessible, transparent, and faster. We have served more than 5,000 nano enterprises, and this fund-raise will help us expand our reach exponentially. Our phygital model, unique underwriting ability & deep understanding of nano enterprises helps us reach remote areas and provide meaningful loans whilst ensuring profitability. We are delighted to have successfully executed this fund-raise in a challenging environment and welcome the support of, the Michael & Susan Dell Foundation and, of our existing shareholders.”

Cofounded in 2016 in Hyderabad by Neeraj Bansal, an alumnus of BIT, Durg and IIM Lucknow, along with Vineet Jawa, an ISB alumnus and serial entrepreneur, CredRight is helping bridge the credit gap for millions of small and medium sized enterprises that do not have access to institutional debt as commercial banks and traditional institutional lenders find it prohibitive to distribute cost-efficiently in remote locations. As a result, small businesses are forced to rely on informal sources such as moneylenders who lack transparency and often charge very high interest rates.

According to the Reserve Bank of India (RBI), fewer than 10% of MSMEs in the country currently have access to formal finance. However, CredRight has emerged as a viable solution by utilizing physical distribution channels and employing an innovative credit underwriting approach based on analyzing small business cash flows, chit fund statements and agricultural incomes. This approach enables CredRight to serve MSMEs even in the most remote locations. In India, there is a staggering credit demand shortfall estimated at $500 billion from approximately 63 million MSMEs, and this shortfall continues to grow each year.

“We are delighted to partner with the CredRight team in serving the acute financing requirements of over 63 million MSME businesses in India,” said Geeta Goel, country director, Michael & Susan Dell Foundation. “The financing gap is wider still for nano entrepreneurs, businesses with an annual turnover between INR 1 and 10 million. These growing businesses account for approximately 20% of the MSME segment yet over 90% of them lack access to formal financing from traditional lenders. These entrepreneurs are the future of India, and Credright is creating opportunity for them, their families, and their communities across the country.”

Sunil K Goyal, Managing Director and Fund Manager at YourNest Venture Capital, said, “CredRight has one of the lowest NPAs in the industry using its innovative underwriting model based on alternate data. With CredRight recently receiving an NBFC license and with this round of funding, the company will be able to significantly grow its loan book exponentially. We continue to have faith in their business and their operating principles which is what inspired us to invest further in the team.”

CredRight has experienced a 10x growth in its assets under management (AUM) over the past three years. The company is targeting AUM of INR 2,000 crore over the next three years.

Tata Capital Plans To Raise $3.38 Bn Mainly Through Debt Instrument

Tata Capital Limited, the Mumbai based financial and investment service provider, is planing to raise 280 billion rupees (US$ 3.38 billion) mainly through debt instruments and bank lines in the current financial year to fund its double-digit credit growth, said a Reuters report citing Rajiv Sabharwal, managing director and CEO of Tata Capital.

In an interview with Reuters, the Tata Capital CEO said, "We try to remain granular and well-spread out on our liabilities whether it is bank funding, NCDs (non-convertible debentures), external commercial borrowing or public debt issue".

Explaining that liabilities will have to match with the company's AUM (assets under management), Sabharwal said, "If credit is expected to grow at around 15%, we will try to grow our AUM (assets under management) by more than 25%."

Stating the company's inclination towards retail sector, Sabharwal further said that the contribution from the retail segment could raise to around 85%, while the remaining 15% will be in corporate.

Tata Capital will deliberately choose companies that are safe and belong to large groups and do not intends to increase its exposure to corporates rated AA and below.

The group's consolidated loan book was 1.28 trillion rupees at the end of June, with more than three-fourths comprising secured loans.

A subsidiary of Tata Sons, Tata Capital offers consumer loans, wealth management, commercial finance, and infrastructure finance, among others.

Tata Capital, registered as NBFC with the RBI, has three subsidiaries – Tata Capital Housing Finance, Tata Capital Financial Services and Tata Cleantech Capital.

Very recently, a subsidiary of Flipkart co-founder Sachin Bansal’s Navi Group, which is also one of the partners of Tata Capital, has been acquired by Ananya Birla’s Svatantra Microfin Private Limited.

Meanwhile, Tata Capital aims to expand its wealth management business, and foray into education financing this year, said Sabharwal to Reuters.

Sachin Bansal’s Chaitanya Set To Acquired by Ananya Birla’s Svatantra for INR 1,479 Cr

Move likely to catapult Svatantra to become the 2nd largest NBFC-MFI with a combined AUM of INR 12,409 Cr

In one of the biggest deals in the microfinance industry, Ananya Birla’s Svatantra Microfin Private Limited (Svatantra), has entered into a definitive agreement to acquire Chaitanya India Fin Credit Private Limited (Chaitanya), a wholly owned subsidiary of Navi Group (Navi). The transaction of INR 1,479 Cr is expected to be completed by the end of 2023, subject to receipt of regulatory approvals and customary closing adjustments.

The proposed acquisition is expected to transform the microfinance landscape, catapulting Svatantra into the second largest microfinance entity in India with a reach of more than 3.6 million active customers through 1,517 branches across 20 states and a combined AUM of INR 12,409 Cr as on March 31, 2023.

Svatantra and Chaitanya are new generation NBFC-MFIs with a strong track record of growth and profitability, leveraging technology to create impact and offer financial services to rural India.

Ms Ananya Birla

Commenting on the development, Ms. Ananya Birla, Founder and Chairperson of Svatantra, said, "Over the years, the Indian Microfinance industry has been a catalyst in the profound transformation of the Indian financial services sector by democratising finance.” She added, “The proposed acquisition will propel Svatantra to a significant leadership position. The combined entity will command a substantial reach, enabling the delivery of a diverse array of financial services to our clients across a geographically diverse portfolio. We are committed to being a responsible lender, and I believe our synergistic strengths and shared ethos will accelerate our ongoing journey to create a unique, valuable and impactful financial services entity. I am extremely proud of the team at Svatantra and the relentless efforts they put in everyday towards our shared vision.”

“We are pleased to announce the proposed sale of Chaitanya to Svatantra,” said Navi Chairman and CEO, Mr. Sachin Bansal. “We have seen Chaitanya grow almost 6X in the last 4 years, making credit accessible to rural India. This transaction is in line with our strategic plan to focus on our digital-first businesses, as we continue our digital-first financial services through the Navi Group. We believe that Svatantra is a good fit for Chaitanya and that the company will continue to grow and prosper with the combined expertise of both teams. I am very proud of the hard work the team has put in to be able to achieve this exponential growth in such a short span. As they take on this legacy, I want to extend my best wishes to them for their future endeavours.”

JM Financial Limited acted as the exclusive financial advisor to Navi for this transaction.

About Svatantra Microfin Private Limited (Svatantra)

Svatantra was incorporated in 2012 by Ms. Ananya Birla. It started its operations in March 2013. In a short span Svatantra has emerged as the most differentiated process and technology-driven microfinance entity, which offers microcredit at affordable rates in the country. Svatantra today with a team of 7,000+ employees serve over 2.2 million rural customers across 19 states with an AUM of INR 7,499 Cr (as on March 31, 2023). Svatantra’s compounded growth rate is that of 118% (FY15-23). The organisation provides affordable financial and non-financial solutions to rural women who are entrepreneurs themselves.

With a central aim of financial inclusion, Svatantra is the only MFI with 100% cashless disbursements, since inception, facilitating activation of bank accounts for its clients. The AA- rated organisation was awarded the best microfinance organisation of the year in 2021 and was placed in the top 30 best places to work in its segment by globally recognized Great Places To Work for two years in a row (2020 & 2022). In addition, Svatantra MHFC, her micro housing arm, is the only housing institution to focus on the EWS/LIG segment, and to have a completely branchless model.

About Chaitanya India Fin Credit Private Limited (Chaitanya)

Chaitanya, founded in 2009, was acquired by Sachin Bansal in October 2019 (along with its parent entity, now called Navi Finserv Limited) for about 150 Cr. Chaitanya has focused on servicing rural India digitally with support from its parent company Navi, and making credit accessible to all of rural India. Since the acquisition Chaitanya’s business has seen a compounded growth rate of 77% YoY, increasing its book size from about INR 900 Cr in March 2020 to over INR 4900 Cr in March 31, 2023. Chaitanya services 1.4 million customers across 12 states in India with an AUM of over INR 4,900 Cr. It had a net worth of INR 721 Cr as on March 31, 2023 which was shored up through a further capital raise of INR 75 Cr in June 2023. Chaitanya, currently A rated (CRISIL), has moved up 4 notches in its credit rating in less than 4 years through the help of its high-quality team of 6,000+ employees. Chaitanya is one of the few MFIs that was not impacted by COVID, in fact it continued to grow at a rate faster than the industry average. Despite the exponential growth in business Chaitanya maintains one of the best collection efficiencies in the industry.

About Navi Group (Navi)

Adopting a mobile-first approach, utilising strong in-house technology and product expertise, Navi is building customer-centric financial products. It is uniquely positioned as the leading end-to-end digital ecosystem player with complete control over customer experience in all three non-payments financial service offerings – lending, insurance, and asset management. Co-founded by Sachin Bansal and Ankit Agarwal, Navi is headquartered in Bangalore.

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Mufin Green, An NBFC for EV Loans, Raises $1 Mn in Funding from Shell Foundation

New Delhi based Mufin Green Finance Limited, formerly APM Finvest Ltd., has raised INR 80,000,000 (approximately USD 1 million) from Shell Foundation, a UK registered charity, reported Economic Times.

Mufin Green Finance is an NBFC catering to Electric Vehicle Loans for income generation purpose. 

The funds raised will be used to create a $2 million joint de-risking pool, known as First Loan Default Guarantee (FLDG). The infusion of funds is expected to unlock commercial capital for financing 2-wheeler and 3- wheeler EVs for low-income transporters in India on a large scale, with the help of larger financial institutions such as IREDA and SBI, paving the way for wider adoption of clean mobility solutions.

The ET report said that the funding is expected to allow Mufin to finance approximately 42,000 EVs, providing more than 210 million rides to low-income groups, and reducing around 0.37 million tons of CO2 over a five-year period.

Founded in 2016, Mufin Green Finance is India's first listed NBFC with a 100% focus on EV financing. With a capital base of 150 Cr and a disbursement history of 250Cr and EV vehicles, Mufin has financed EV assets worth more than 300Cr over the last couple of years. The EV financing company claims to hold a 7-8% market share of Erickshaw financing in our operating territory, spread across 14 states.

A subsidiary of Hindon Mercantile Limited, Mufin Green Finance is backed by Incofin India Progress Fund, a Belgium-based impact investor, as equity partners. Mufin Green's debt partners include State Bank of India, IREDA (India's most trusted financial institution for renewable energy), and Symbiotic, a global impact fund, that has started a partnership in the form of green bonds with Mufin Green.

Earlier this month, industry body CII, in a report titled "Roadmap for Future Mobility 2030", said that — Financing for electric vehicles in India remains a challenge and therefore it is necessary to offer options that can help adjust costs and electric vehicles (EVs) to bring equal to the cost of vehicles with internal combustion engines (ICE).

BharatPe Acquires 51% Stake in Trillion Loans, a Mumbai-based NBFC

Appoints Ravindra Pandey, Nalin Negi and Sabyasachi Senapati on the Board of the NBFC

Trillion Loans to operate as an independent entity and explore partnerships with other fintech companies

BharatPe Group, India’s leading name in fintech, today announced that it has completed its acquisition of a majority stake in Trillion Loans, a renowned NBFC (Non-Banking Financial Company) based out of Mumbai. The deal was completed in the month of April. This acquisition is in line with BharatPe Group’s vision to be at the forefront of addressing the credit gap for millions of businesses and consumers in the country. BharatPe shared that Ravindra Pandey, Nalin Negi and Sabyasachi Senapati have been appointed on the Board of Trillion Loans.

Trillion Loans will operate as an independent entity with its own team under the supervision of the Board. It will explore partnerships with other fintech firms and other companies to enable credit across a diverse set of businesses and consumers. BharatPe has also infused a substantial amount of investment into Trillion Loans to enable the NBFC to grow its loan book.

Trillion Loans is a fast-growing NBFC that offers a range of secured and unsecured loans to SMEs, including small business loans as well as working capital loans. Additionally, the company also offers a range of products for consumers, such as auto, gold, and education loans.

Commenting on the acquisition, Shashvat Nakrani, Founder and COO, BharatPe said, “We had launched our merchant lending vertical in 2019 and it has grown exponentially over the course of the last 3+ years. Today, we facilitate loans of over Rs. 500 crores every month to our merchant partners. Providing access to credit to our merchant partners is key to our business model, and this acquisition will further propel our growth and accelerate our journey to profitability. Acquiring controlling stake in Trillion Loans is aligned to the BharatPe Group’s larger purpose and will enable us to facilitate access to capital to a wider set of underserved and unbanked businesses as well as customers. Trillion Loans will work independently and will be technology-driven NBFC. It will be open to partner with other fintechs and startups, so as to offer their customers a quick and streamlined experience. BharatPe values its existing partnerships with NBFCs and financial institutions and this acquisition will have no impact on these relationships.”

Added Shashvat, “BharatPe will bring in the product and technology capabilities that will further empower Trillion Loans to launch new and path-breaking digital lending products that will cater to a diverse set of business owners and customers. I believe that there is a huge opportunity for Trillion Loans to further grow and address the close to US$ 380 billion MSME credit gap as well as meet the diverse consumer credit demand in the country that has the largest youth population in the world. I would like to welcome the Trillion Loans team to the BharatPe family.”

Ravindra Pandey is a veteran in the financial services industry. A senior banker, he was superannuated recently after a stellar career spanning 37 years with the State Bank of India. Mr. Pandey has served on the Board of several large and highly reputed organizations. He was Director of the Board at Yes Bank, National Payments Corporation of India (NPCI), NPCI International, NPCI Bharat BillPay Ltd, SBI Payments and C-EDGE Technologies Ltd. In addition, he was a permanent invitee to the Board and other Board level committees of the State Bank of India. Nalin Negi is the CFO and interim CEO of BharatPe. Sabyasachi Senapati is currently a part of the leadership team at BharatPe and heads their banking vertical.

About BharatPe Group

BharatPe was founded in 2018 to make financial inclusion a reality for Indian merchants. In 2018, BharatPe launched India’s first UPI interoperable QR code, the first zero MDR payment acceptance service. In 2020, post-Covid, BharatPe also launched a card acceptance terminal – BharatSwipe. Currently serving 1 crore merchants across 400+ cities, the company is a leader in UPI offline transactions, processing 30 crores+ UPI transactions per month (annualized Transaction Processed Value of over US$ 24 Bn in payments).

The company has already facilitated the disbursement of loans totaling close to ₹8000 crores. BharatPe’s POS business processes payments of over US$ 3.5 bn annually on its machines. BharatPe has raised over US$ 583 million in equity till date. The company’s list of marquee investors includes Tiger Global, Dragoneer Investment Group, Steadfast Capital, Coatue Management, Ribbit Capital, Insight Partners, Steadview Capital, Beenext, Amplo, and Sequoia Capital. In June 2021, the company announced the acquisition of PAYBACK India, the country’s largest multi-brand loyalty program company with 100 million+ members.

In October 2021, the consortium of Centrum Financial Services Limited (Centrum) and BharatPe, was issued a Small Finance Bank (SFB) license by the Reserve Bank of India (RBI). BharatPe also entered the Buy Now Pay Later (BNPL) segment with the launch of postpe in October 2021. postpe has over 8 million downloads and an annualized TPV of close to Rs. 5000 crores. Recently, BharatPe Group received an in-principle nod from the Reserve Bank of India (RBI) to operate as an online payment aggregator.

InPrime Finserv Officially Recognized as Non-Banking Financial Company by Reserve Bank of India

Bangalore-based InPrime Finserv (legal name – STK credit private limited), a financial services start-up catering to the informal economy, has achieved a significant milestone by obtaining a Certificate of Registration (COR) from the Reserve Bank of India (RBI) to operate as a Non-Banking Financial Company (NBFC). With this license, InPrime joins an exclusive group of startups that have received approval from the RBI to build a lending business, achieving this feat in less than five months.

InPrime aims to transform the way informal customers access formal finance in India by identifying and tapping into an untapped segment of the informal economy, which it calls the "Prime" segment.This segment includes progressive households with multiple earning avenues, who are eager to learn and adapt to the evolving digital and financial ecosystem to advance their businesses and personal lives. InPrime recognizes the need for enhanced and tailor-made financial services for this segment, which is largely underserved by the market. By developing customized financial products, InPrime plans to cater to an estimated incremental annual credit demand of approximately Rs. 5 Lac Cr, addressing an unmet need in the market.

InPrime's unique hybrid model leverages digital footprints and conducts comprehensive on-field assessments to accurately evaluate customers' needs, financial capacity, creditworthiness, and risk profiles. Additionally, InPrime plans to empower customers holistically by providing multiple repayment channels and a gamified financial and digital literacy program to promote self-service.

InPrime recognizes that the penetration of smartphones and data has led to an increase in digital services consumption by informal customers. InPrime will leverage platforms such as Aadhar, India Stack, UPI, and Account Aggregator to create a unique value proposition for digitally active customers, focusing on customized financial services as its core tenants.

Rajat Singh, Co-founder & CEO of InPrime, said, "We are thrilled to receive the NBFC license and are committed to making a positive impact on the informal economy in India by unlocking financial inclusion 2.0. It is a general perception that prime segment is only within the formal economy. Whereas we observe sustainable, growing and profitable informal businesses all around us. And there lies the opportunity for InPrime”.

As a responsible lender, InPrime Finserv is committed to comply with all applicable regulations. With their CoR in hand, the company plans to commence operations in Bangalore in the coming months and gradually expand its presence in Karnataka and Tamil Nadu, playing a significant role in promoting financial inclusion in India.

InPrime extends its sincere gratitude to its institutional and angel investing partners, early joiners, tech partners, consulting partners, and all well-wishers for their unwavering support. 

About InPrime Finserv

InPrime Finserv is a brand owned by STK Credit Private Limited, a Non-Banking Financial Company (NBFC) headquartered in Bangalore. InPrime is on a mission to "Redefine the way informal customers access formal finance." It is focused on providing financial services to the "Prime" segment of India's informal economy, which consists of around 50 million households with an annual credit need of Rs. 5 Lakh Crores. These households demonstrate a growth mindset, are transitioning to a less cash-dependent economy, and are gradually adopting digital technologies. They also have a proven credit and financial track record spanning several years.

InPrime's goal is to identify this emerging segment within the informal economy and serve them with customized financial products designed to meet their evolving needs. The company plans to adopt a hybrid approach, combining the successful attributes of traditional lending with modern lending practices centered on data, digital, technology, and innovation. This strategy aims to generate superior financial and non-financial value while focusing on the core elements of financial services: customer connection, engagement, and risk management.

InPrime's lending approach will be characterized by a combination of field assessments and analysis of customers' partially available digital footprints. This comprehensive evaluation will help determine customer needs, creditworthiness, and risk profiles. Prioritizing a customer-centric focus, the company's operations aim to offer a hassle-free onboarding experience and a swift turn-around time. InPrime seeks to empower its customers by providing multiple repayment channels and a gamified financial and digital literacy program to promote self-service.

InPrime is founded by Rajat Singh, Manish Raj, and Sneh Thakur, who collectively possess over four decades of experience in this market segment. As former members of Ujjivan Small Finance Bank's leadership team, the trio brings their expertise in managing scale, handling crises, and driving impact and problem-solving. InPrime is backed by prominent investors such as InfoEdge Venture, Titan Capital, and Kettle Borough VC, along with a supportive network of angel investors.

Disclaimer

"Reserve Bank of India neither accepts any responsibility nor guarantees the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for discharge of any liability by the company. "

"Neither there is any provision in law to keep, nor does the company keep any part of the deposits with the Reserve Bank of India and by issuing a Certificate of Registration to the company, the Reserve Bank of India, neither accents any responsibility nor guarantees the payment of deposits to any depositor or any person who has lent any sum to the company. 

Avanti Finance Raises Series B Funding of USD 24 Mn from Rabo Partnerships, IDH Farmfit Fund and Existing Investors

Bengaluru-based Avanti Finance (“Avanti”), a technology-led NBFC focused on financial inclusion, has secured USD 24 million equity funding from Rabo Partnerships, the wholly owned subsidiary of the Rabobank Group focused on financial inclusion and rural development, and IDH Farmfit Fund. Existing investors Oikocredit and NRJN Trust also participated in the fundraise. The investment will support Avanti's mission of providing frictionless, affordable and hyperlocal credit products to smallholder farmers in India, enabling them to build sustainable livelihoods.

The investment in Avanti is in line with Rabo Partnerships’ "smallholder ecosystem" strategy, which focuses on providing data-driven finance solutions to smallholder farmers through local cooperatives and service providers. Smallholders play an increasingly important role in feeding a growing world population. Increasing access to financial services will benefit farmer households and help achieve rural development and global food system change.

Rahul Gupta, CEO of Avanti Finance said, "We are delighted to have Rabo Partnerships and IDH Farmfit Fund as our new partners with their global experience in the agri space. There is complete mission-alignment to create a population scale, digital financial inclusion platform for the un/underserved segment, including smallholder farmers that constitute 86% of our agrarian economy, yet continue to battle against the circle of poverty. This investment will support ongoing investments in our deep tech platform to develop fit for purpose hyperlocal credit products, automated data & social signals driven underwriting for data-dark customers, amplify our partnership network and accelerate co-lending programs with other financial institutions for capital efficiency. The Avanti team has done a ton of heavy lifting to establish a digital delivery model with our unique paperless, presenceless & cashless approach, served 275K households, disbursed over 1300 crores with a lean team of only 65 employees and zero proprietary branches, showcasing the power of digital & leveraging existing community based networks. We are now ready to take the leap towards 1.5 million served households with a targeted AUM of over 2500 crores in the next 24 months.”

Marianne Schoemaker, CEO Rabo Partnerships at Rabobank said, “Avanti has established itself as a frontrunner in digital and business model innovation by leveraging local organisations and high-tech financial solutions, and we are excited to support its growth. We believe in Avanti’s vision of financial inclusion, especially for the agricultural sector, where access to appropriate financial services remains a challenge for many. Due to the large number of farmers, the digital infrastructure and the ICT talent available, the Indian market is the ideal place to test and scale innovative solutions for food transition and creating a more inclusive society. This investment supports our strategy of promoting data-driven finance solutions through local cooperatives and service providers, which is close to our roots as a cooperative bank.”

Miguel Tamayo Maertens, Investment Director at IDH Farmfit Fund said, "Avanti has developed a scalable ,digital solution to unlock finance for smallholder farmers. Smallholder farming is at the core of livelihood economic activities in rural India and we are excited to support Avanti's mission of providing access to timely and affordable finance to millions of farmers. This strategic partnership supports the IDH Farmfit Fund strategy to invest in innovative and impactful solutions that are enabling the access to finance and connected services to smallholder farmers so they can improve their livelihoods".

Avanti has co-created more than 180 customised loan products to cater to different types of livelihood streams and income flows. Avanti Finance currently has 75 mission-aligned partners including social enterprises, financial institutions, business correspondents, agri tech players and Farmer Producer Organisations (FPOs) covering 24 states and appx 300 districts in India

Abhiraj Krishna Associates acted as the legal advisors and Unitus Capital acted as exclusive financial transaction advisor to Avanti.

About Avanti Finance

Avanti’s mission is to enable sustainable livelihoods and empower the next 100 million households through accessible and affordable financial services. It is building a co-creation platform that fosters hyperlocal livelihood innovation and mass customisation. Avanti believes community-centric systems enable the digitisation of the social trust of the users, which is critical to building scale in the unbanked segment. For more information, see www.avantifinance.in

About Rabo Partnerships

Rabo Partnerships is a wholly owned subsidiary of the Rabobank Group, focused on creating structural impact through improvement of financial inclusion, rural development and food security. Drawing on the capabilities of the Rabobank Group, Rabo Partnerships contributes with knowledge, networks, digital solutions, impact finance and investments to partnerships for improving rural development and agricultural sectors in emerging economies. The activities of Rabo partnerships focus on two transitions Rabobank wants to contribute to: A More Inclusive Society & Food Transition. Rabobank’s mission of Growing a better world together is also reflected in Rabo Partnerships’ collaborations with many public and private sector partners. For more information, go to visit Rabo Partnerships - Rabobank.

About IDH Farmfit Fund

The IDH Farmfit Fund is a EUR 100m impact investment fund, aimed at enabling increased access to affordable finance for smallholders and allow for responsible business growth and/or efficiency gains for smallholder farmers. The Fund takes on the highest-risk positions in farmer related investment transactions, to reduce liabilities for borrowers and lenders. In turn, smallholder farmers can access long-term financing that allows them to invest in their farms, increase productivity, and adopt best practices for climate-smart agriculture. The IDH Farmfit Fund is facilitated by IDH, The Sustainable Trade Initiative, and supported by a unique coalition of partners including commercial banks, development banks, government bodies and value chain companies. www.idhsustainabletrade.com