Credit Fair obtains debt financing from Northern Arc Capital

Credit Fair, a consumer lending fintech startup, has secured an undisclosed sum of debt from Northern Arc Capital, the company said in a statement on Wednesday.

The company said it plans to use the debt fund amount to provide specific funding for education, medical care, electric vehicles and home renovations.

“We will benefit from Northern Arc’s experience advising hundreds of leading financial services companies. In addition to the injection of funds, they will advise us on the optimization of our debt raising strategy. Aditya Damani, founder of Credit Fair said.

Credit Fair seeks to expand its portfolios with products and services by partnering with other non-bank financial companies.

Formed by Aditya Damani in May 2018, the B2B2C loan-focused startup aims to create a credit ladder for 550 million underserved Indians. It offers credit solutions to both businesses and individuals. The size of the note varies from Rs 10,000 to Rs 20 lakh and the duration from three months to three years.

Its financial partners are over 1,000 merchants, including brands such as upGrad, Nova IVF, Design Cafe, Asian Paints, Arrivae, Hero Electric and Ampere by Greaves.

Northern Arc Capital (formerly IFMR Capital Finance) is a digital debt platform for underbanked people in the Indian financial services industry, created primarily to provide access to debt capital to meet various credit needs. underserved households and businesses.

The Chennai-based lender, who has filed an IPO application to raise up to Rs 300 crore and an offer to sell (OFS), may also consider issuing shares on a private placement up to Rs 150. crore before filing the DRHP as a pre-IPO placement.

The proceeds of the issue will be used to increase its capital base to meet future capital needs.

In March 2021, its risk-weighted capital / risk ratio was 28.89%, of which 27.62% in Tier I capital.

Axis Capital Limited, Credit Suisse Securities (India) Private Limited, IIFL Securities Limited and SBI Capital Markets Limited are the Book Running Lead Managers of the issue.

For FY 21 net profit stood at Rs 76.59 crore on total operating income of Rs 681.17 crore compared to Rs 102.93 crore a year ago on income of Rs 632 , 82 crore last year. Its gross NPA was 2.3% while its net NPA was 0.9%.

NBFC’s total outstanding loans without deposit amounted to Rs 3,920.81 crore.

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