Fintech startup Stashfin raises $100 million in debt
Fintech platform Stashfin said Wednesday it has raised $100 million in debt from InnoVen Capital and Trifecta Capital. Lenders such as Cholamandalam Investment and Finance Company (Chola), Northern Arc Capital, Vivriti Capital, Hinduja Leyland, MAS Financial Services, among others, also participated in the round.
The big-ticket fundraising comes as a follow-up to the company’s Series C round, in May 2022, where it raised $270 million at a $730 million valuation. Of the $270 million, only $70 million was in exchange for equity from San Francisco-based Uncorrelated Ventures, while the rest was debt financing from companies like Fasanara Capital, with participation from Abstract Ventures and other investors.
Singapore-based Stashfin said it will use these funds to optimize its portfolio for potential securitization, improve customer experience and further improve financial inclusion.
About 80% of revenue comes from India, with regions such as Singapore accounting for the remainder. Stashfin, which also holds a non-banking financial company (NBFC) license in India, extends credit limits through a Visa card, starting at 10,000. The company has emphasized that it aims to meet the “unforeseen needs of the underbanked.”
Tushar Aggarwal, CEO & Founder, Stashfin, said, “It is promising to see how our efforts and unique product offerings have helped us scale rapidly and have benefited all our partners and stakeholders. The new collaborations will enhance our growth given our robust business model and extensive market demand.”
Stashfin offers its services to over 10 million customers who have limited credit. Ashish Sharma, Managing Partner, InnoVen Capital said, “Players like Stashfin are defining a new category by providing access to funds for underserved segments. We are confident that our partnership will further drive positive growth for the organization and Stashfin will continue to play a crucial role in the fintech ecosystem.”
Stashfin was founded in 2016 and so far has about $430 million in a mix of debt and equity funding from multiple investors.
The debt financing comes at a time when several B2B commerce, fintech and retail technology companies, among others, have resorted to risky debt in the past year or so, as equity becomes hard to come by, especially at sky-high valuations that startups have commanded in the past. Indian new-age companies raised a total of $800 million in venture debt in 2022, a 2.6-fold jump compared to 2019 when startups had secured around $281 million, a report by venture debt firm Stride Ventures showed. It was predicted to rise manifold in the coming years.
