FincFriends Pvt.Ltd, an NBFC, has raised $1 million in debt funding from Eclear Leasing & Finance Pvt. Ltd, a major lending NBFC. The company intends to use the financing approved by lenders in tranches for business expansion, growth, and cash flow efficiency. FincFriends has its own lending platform and app, RupeeRedee, which it uses to lend to customers.
FincFriends intends to employ debt to expand the loan book and eliminate the requirement for equity at this point in the business.
Commenting on the current debt funding Arjun Passi’s, VP – Strategy and Business Development, Spearheading the Fundraise initiative for the NBFC said “As a strategic decision we have decided to raise more funds through debt to build our books. A “Good Debt” is the need now as equity is the most expensive form of funding. We want to build more credibility in the market by servicing such debt successfully. Good credit history will not only help us get lower ROI debts in the future but also help us create a positive reputation enabling better valuations and market perception”