FincFriends raises $1 mn in debt from Eclear Leasing

FincFriends Pvt. Ltd, a NBFC has raised $1 million in debt funding from a lending NBFC firm – Eclear Leasing & Finance Pvt. Ltd. The company aims to use the debt sanctioned by lenders in tranches for business expansion, growth and effective cashflows. FincFriends has its own App and lending Platform RupeeRedee which is used for lending to customers.

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.”

FincFriends aims to use the debt to build in the loan book further and replace the need for equity infusion at the present stage of business, it said in a press release.

Manoj Bansal, Managing Director, Eclear Leasing & Finance Pvt. Ltd, said, “We are happy to support FincFriendsPvt. ltd in its endeavour in growing its current business. “

With the digitization of the lending process, fintech companies are emphasizing building robust digital infrastructure to identify and manage risks. As part of the business plans, the company is aggressively looking to close a funding deal of $5 mn in 2022, it added.