True Balance, a fintech firm that focuses on the consumer segment, has raised $10 million (around Rs 72.39 crore) in debt funding for its non-banking finance company (NBFC) True Credits, it said on Monday.
Gurugram-based True Balance has raised this capital from investors including Northern Arc Capital as well as others from India and South Korea, it said in a statement.
This development comes after True Balance – operated by Balancehero India, a wholly owned subsidiary of Balancehero Co Ltd, Korea – secured $28 million (around Rs 208 crore) in a Series D fundraise in November last year.
Investors in that round included SoftBank Ventures Asia, and South Korea-based investment firms Naver, BonAngels, Daesung Private Equity and Shinhan Capital.
True Balance was founded in 2014 by Charlie Lee, an alumnus of University of Chicago. The company’s India operations were launched in 2016.
This debt infusion will be used to support True Credits and help it break even.
So far, True Balance says the unit has disbursed over $30 million in loans. The target audience for its products include underbanked and financially excluded segments of the country’s population.
The company says it uses an internal alternative credit scoring system as well as a machine learning-based underwriting model to support and fund new-to-credit and low-credit customers.
True Balance chief financial officer Vishal Bhatia said the fintech firm is expecting additional funding of $40 million.
True Balance’s Series D round in in November 2020 came a little over a year after the company raised $23 million in its Series C round from investors including NH Investment & Securities, IMM Investments, D3 Jubilee Partners and Shinhan Capital.
Previously, the firm had raised $15 million in its Series B round in 2017 and secured Series A capital from SoftBank Ventures the year before that.