Fintech lender Credit Fair has secured $10 million (around Rs 80 crore) in a mix of equity and debt as part of its extended seed round from LC Nueva Investment Partners, the company said on Wednesday.
The round also saw participation from Capital A, Sattva family office, Nitesh Damani of Khel Group and Nikhil Chandra Gupta, apart from existing investors such as Anand Ladsariya, Neeraj Goenka and Alok Agarwal. InCred Finance, Vivriti Capital and Caspian Impact provided debt capital.
LC Nueva invested through their early-stage venture capital fund, LC Nueva Alternative Investment Fund (AIF).
The Mumbai-based startup will use the funds to enhance technology. It will also use the funds for capital infusion to launch its wealth-tech platform, Credit Fair Capital. The company said it has remained conservative with its cash burn, thus claiming to maintain an NPA (non-performing assets) level at 0.75%.
“The revival of economic activities after the pandemic-led disruptions has resurrected consumer sentiment and reinvigorated credit demand across business and consumer segments. The behavioural shift has also catalyzed steady adoption of digital channels and omnichannel platforms to go for business or consumer finance solutions,” Sohil Chand, founding partner and chief investment officer, LC Nueva AIF.
Formed by Aditya Damani in May 2018, the B2B2C lending-focused startup aims to build a credit ladder for 550 million underserved Indians. It offers lending solutions to both businesses and private individuals. The ticket size ranges from Rs 10,000 to Rs 20 lakh and tenure from three months to three years.
The company aims to reach 5,000 active merchant partners and increase disbursements to a $360 million annual run rate. It has partnered with brands like including brands such as upGrad, Nova IVF, Design Cafe, Asian Paints, Arrivae, Hero Electric and Ampere by Greaves.
Last year, Credit Fair raised an undisclosed sum in debt from Northern Arc Capital. It also raised $15 million as part of its seed round led by angel investors Anand Ladsariya and Alok Agarwal. The investors have previously backed startups including Oyo, Ola, Myntra, Healthkart, WowMomos, Uniphore and 1mg.