Bengaluru-based fintech startup Finnable has secured INR 30.55 crore (~USD 3.7 million) in a Series B funding round. Led by TVS Shriram Growth Fund, the round also saw participation from Malpani Retails, Harsh Anand Jain, Neha Bagaria, Roopjyot Engineering, and others. This fresh capital injection reinforces Finnable’s position in India’s competitive digital lending market.
Investment Breakdown in Finnable
Regulatory filings reveal that Finnable’s board approved the issuance of 92,831 preference shares at INR 3,290.95 per share, raising INR 30.55 crore. The key investors and their contributions:
- TVS Shriram Growth Fund: INR 19.40 crore
- Malpani Retails: INR 4.70 crore
- Other investors (including Harsh Anand Jain & Neha Bagaria): INR 6.45 crore
TVS Shriram Growth Fund, a private equity arm of TVS Capital, plays a pivotal role in this round, enhancing Finnable’s ability to scale and expand its lending solutions for salaried professionals.
Valuation and Equity Impact
Post-funding, Finnable’s valuation is expected to reach INR 866 crore (USD 100+ million), as per startup analytics platform TheKredible. The revised stake distribution:
- MEMG Family Office LLP: 18.69%
- Matrix Partners India: 14.53%
- TVS Shriram Growth Fund: 8.05%
This structure reflects a strong investor base, strategically aligned to support the company’s growth ambitions.
Company Background
Founded in 2016 by former bankers Nitin Gupta, Amit Arora, and Viraj Tyagi, Finnable offers personal loans to salaried individuals, streamlining access to credit through digital platforms. Prior to this round, the company raised USD 5.77 million (~INR 50.47 crore) across three funding rounds, with backing from investors like Manipal Global and MEMG Family Office.
In FY23, Finnable reported revenue exceeding INR 100 crore, but also recorded a net loss of INR 19.51 crore. The financials for FY24 are yet to be disclosed. Despite profitability challenges, the company remains a growing player in India’s fintech ecosystem.
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Market Strategy and Future Outlook
With fresh capital, Finnable aims to expand operations, enhance its digital lending solutions, and widen its customer base. Backing from TVS Shriram Growth Fund strengthens its market position, allowing it to compete in India’s rapidly evolving fintech space.
India’s digital lending market has seen substantial growth, fueled by increased smartphone penetration, regulatory shifts, and changing consumer credit behavior. The company’s business model aligns with these trends, positioning it for sustained expansion.
As the company executes its next phase of growth, industry analysts will be watching its fund deployment strategy, operational efficiency, and financial performance in the coming quarters.