Bengaluru-based digital lending platform Finnable is gearing up to raise ₹250 crore (approximately $29 million) in a pre-series C funding round led by Matrix Partners, TVS Capital, and India Nippon Electricals Limited. The development signals strong investor confidence in the fintech space, as personal lending startups continue to attract attention for their growth potential in India’s underserved credit markets.
According to a board resolution accessed from the Registrar of Companies (RoC), Finnable has already issued 3,35,238 preference shares at an issue price of ₹3,788.35 each, securing ₹127 crore (about $14.7 million) in the first tranche of the funding round. Matrix Partners has led this tranche by investing ₹125 crore, while India Nippon Electricals Limited contributed ₹2 crore. The remaining funds are expected to be infused in the near term, bringing the total raise to ₹250 crore.
A Strong Vote of Confidence from Investors
This funding round follows closely on the heels of a ₹40 crore investment from Ranjan Pai’s family office reported six months ago, underscoring sustained interest from high-profile investors in the startup’s growth prospects. With this round, Matrix Partners and TVS Capital are deepening their commitment to the fintech sector, betting on the rising demand for credit solutions among salaried professionals.
Post-money valuation estimates from Entrackr place Finnable’s worth at ₹1,300 crore (about $150 million), further highlighting investor optimism despite the highly competitive nature of digital lending.
Shareholding Structure and Founder Stakes
Before this round, MEMG Family Office LLP held an 18.69% stake in Finnable, while Matrix Partners India and TVS Shriram Growth owned 14.53% and 8.05%, respectively. Co-founder and CEO Nitin Gupta retained over 24% of the company. With the fresh infusion of funds, the cap table is set to shift, diluting the founders’ stakes but providing crucial capital for scaling operations.
The new funds will likely be used to expand Finnable’s lending portfolio, invest in technology, and enhance customer acquisition efforts — key areas for startups in the highly competitive digital credit space.
About Finnable: A Journey Rooted in Financial Inclusion
Founded in 2016 by ex-bankers Nitin Gupta, Amit Arora, and Viraj Tyagi, Finnable has positioned itself as a customer-first personal loan provider catering primarily to salaried professionals. The company leverages technology-driven underwriting models to assess creditworthiness, aiming to offer faster and more accessible loans than traditional banks.
According to its website, Finnable’s assets under management (AUM) currently stand at ₹3,000 crore, and it has served over 2.7 lakh customers to date. These figures reflect strong traction and trust-building efforts among middle-class borrowers — a segment often underserved by conventional financial institutions.
Financials: Revenue Growth and Losses
While the company’s growth story is encouraging, like many fintech startups, profitability remains a work in progress. For the fiscal year ended FY24, Finnable reported a revenue of ₹181.7 crore but posted losses of ₹5.88 crore. The company has yet to release its FY25 financials, but the expectation is that the new round of funding will help shore up operations and drive revenue expansion.
In a sector where scaling quickly is often prioritized over near-term profits, such losses are considered part of the growth trajectory — provided customer acquisition and retention rates remain robust.
Why This Funding Round Matters
The fresh capital will help Finnable address key challenges and opportunities:
- Scale operations to serve more borrowers across new geographies
- Strengthen underwriting technology for better risk assessment and faster loan disbursement
- Expand marketing efforts to capture larger market share in a growing digital credit space
- Enhance customer experience through improved product offerings and customer service
Furthermore, the timing couldn’t be better. As banks and NBFCs tighten lending norms and the demand for credit among salaried professionals grows, startups like Finnable are stepping in to fill the gap with tech-enabled, data-backed solutions.
A Fintech Sector on the Rise
India’s fintech ecosystem has seen a surge in activity over the past decade, particularly in lending, payments, and wealth management. As smartphone penetration increases and digital financial services become more mainstream, startups that can combine affordability, transparency, and convenience are well positioned to succeed.
However, competition is fierce. Numerous lending startups are vying for customer attention, and regulatory scrutiny around lending practices is tightening. In this environment, access to capital, robust risk models, and customer trust will differentiate winners from losers.
Looking Ahead
With the upcoming tranche expected to bring the funding total to ₹250 crore, Finnable is set to strengthen its position as one of the more promising digital lending startups in India. The involvement of marquee investors like Matrix Partners and TVS Capital reflects confidence in the company’s leadership, technology, and vision.
For borrowers, this funding means more accessible personal loans and improved credit infrastructure. For investors, it signals continued opportunity in fintech — an area that, despite its challenges, remains ripe for innovation.
As Finnable charts its next phase of growth, all eyes will be on how effectively it leverages this capital to scale responsibly and sustainably in a market that demands both speed and trust.
