Fibe, formerly known as EarlySalary, has raised $90 million in its Series E fundraising round. TR Capital, Trifecta Capital, and Amara Partners co-led the round, which also included current investors TPG Rise Fund, Norwest Venture Partners, Eight Roads Ventures, and Chiratae Ventures.
Expansion and Growth on the Horizon
The investment round includes both main and secondary transactions, with the proceeds going toward Fibe’s expansion and growth goals. According to regulatory records obtained by the RoC, the company’s board approved the issuing of 5,46,75,600 Series E CCPS at Rs 100 each, raising a total of Rs 547 crore ($66 million).
TPG Rise Fund Leads the Round
TPG’s The Rise Fund emerged as the frontrunner, giving Rs 133 crore ($16 million), with Kabira Holdings adding Rs 125 crore ($15 million). Other noteworthy investors were Eight Road Ventures (Rs 41.6 crore or $5 million), Norwest Venture Partners (Rs 62.5 crore or $7.5 million), Trifecta Capital (Rs 55 crore or $6.6 million), Amara Partners (Rs 29.17 crore), and Chiratae Ventures (Rs 100 crore).
Valuation Soars to $590-600 Million
According to industry estimates from TheKredible, Fibe’s post-money valuation has risen to about $590-600 million, a considerable increase from its previous Series D valuation of $350 million. With the new capital, TPG’s The Rise Fund strengthens its position as the largest stakeholder, with a 22.72% stake. Other major stockholders include Eight Road Ventures (15.8%), Norwest Venture Partners (13.58%), Chiratae Ventures (9.59%), and Kabira Holdings (6.01%).
Diversified Loan Portfolio and Technological Innovation
Founded in 2015 by Akshay Mehrotra and Ashish Goyal, Fibe has carved a niche in the Indian lending market by offering a diverse range of personal and impact loans. These categories encompass healthcare loans, education technology (edtech) loans, insurance financing, school fee financing, and more. The company recently unveiled India’s first numberless co-branded credit card, showcasing its commitment to technological innovation in the financial services sector.
Impressive Loan Disbursement Numbers
Fibe boasts a commendable track record, having disbursed over 6 million loans with a cumulative value exceeding Rs 20,000 crore. The company’s growth trajectory is further accentuated by its achievement of surpassing $110 million in its Series D round, led by TPG’s The Rise Fund and Norwest Venture Partners in August 2023. This latest funding round propels Fibe’s total capital raised to over $200 million.
Financial Performance on an Upswing
Fibe’s financial performance reflects a robust growth trajectory. The company managed to multiply its operating revenue by 2.3 times in the fiscal year ending March 2023. Even more impressive is the over 9X surge in profits witnessed during the same period. Startup data intelligence platform TheKredible reports that Fibe’s operating collection stood at a noteworthy Rs 414 crore in FY23, while its profits spiked to Rs 36 crore.
Competitive Landscape in Consumer Lending
Fibe navigates a dynamic market landscape, competing head-on with established players like Slice, LoanTap, PaySense, MoneyTap, and IndiaLends. The company’s strategic approach and focus on innovation position it well to capitalize on the burgeoning consumer lending market in India.
Continued Growth and Market Expansion
With the current funding, Fibe is well-positioned for continued growth and market expansion. The company’s focus to providing a diverse loan portfolio, combined with technology developments, establishes it as a powerful competitor in the Indian fintech market. As Fibe takes advantage of its new capital injection, industry onlookers eagerly await its next strategic decisions and their impact on the ever-changing consumer lending sector.
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