Chiratae-backed alternative finance fintech Getvantage gets NBFC licence
Getvantage, which claims to be the first and only income-based financing and alternative financing platform in India to get an NBFC license, says it will operate its lending business through GetGrowth Capital, its shadow banking arm
Chiratae Ventures-backed alternative finance fintech platform Getvantage has secured a non-banking financial company (NBFC) license from the Reserve Bank of India (RBI), a development that will help the company scale up its financing business.
Getvantage, which claims to be the first and only income-based financing and alternative financing platform in India to get an NBFC license, said on May 4 that it would operate lending business through GetGrowth Capital, its NBFC arm.
“We are grateful to lead by example and push for greater regulatory compliance in this area for all players. Being unlicensed is not an option. This milestone will enable us to accelerate our growth trajectory, expand our reach ours and offer more value to our customers”, said Getvantage Founder and CEO Bhavik Vasa.
The company will capitalize the NBFC with Rs 50 crore and look to raise Rs 200 crore in total to scale up lending, Getvantage said in a statement.
Getvantage said it was on track to reach annual disbursements of over Rs 500 crore in short-term working capital financing and aimed to lend to more than 1,000 new small and medium enterprises (SMEs) in the next 18 months.
It will provide working capital to sectors such as business-to-business software-as-a-service (B2B SaaS), cleantech, direct-to-customer (D2C), electric vehicles (EV) and infrastructure, e-commerce, quick-service restaurants (QSRs) among others, the fintech firm said. The company has estimated the working capital for the SME market at 300 billion dollars.
Founded in 2020 by former EbixCash CEO Vasa with tech and startup veteran Amit Srivastava, GetVantage enables startups to access loans between $10,000 and $500,000 within days from lending partners, based on the revenue performance of those companies .
It claims to have arranged funding for over 500 new economy businesses in the last 18 months. The company most recently raised $36 million led by Varanium Nexgen Fintech Fund, DMI Sparkle Fund and existing investors Chiratae Ventures and Dream Incubator Japan.
Getvantage joins a growing list of fintech companies seeking and securing NBFC licenses to expand their market share with differentiated lending offerings.
As reported by money control, Walmart-backed PhonePe, which is foraying into digital lending, is also seeking an NBFC license. Besides PhonePe, the neobanking platform Jupiter has also secured an NBFC licence.
Earlier this year, Moneycontrol wrote how lending-focused startups had beaten PE/VC funding (private equity and venture capital) in 2023, despite the so-called funding winter.
