Fintech leader CRED, founded by Kunal Shah, is set to invest ₹550 crore into its non-banking financial company (NBFC) subsidiary, Newtap Finance Pvt Ltd (NFPL). This investment is expected to strengthen NFPL’s capital base, allowing it to scale its lending operations and expand financial services.
Investment Details
CRED’s planned infusion into NFPL is aimed at enhancing its lending capabilities, enabling the company to offer a broader range of financial products. The investment aligns with NFPL’s efforts to scale up and capitalize on the growing demand for digital lending solutions in India.
Newtap Finance's Growth Trajectory
NFPL has been rapidly expanding its lending business, with its loan book recently surpassing the ₹19,000 crore mark. To support its continued growth, the company is actively exploring an equity fundraise of ₹550 crore, with discussions currently in the early stages.
Strategic Objectives
The investment is expected to:
- Enhance capital reserves to support NFPL’s growing loan book.
- Expand lending operations by introducing new financial products.
- Strengthen co-lending partnerships with other financial institutions.
- Build a stronger financial ecosystem within CRED’s fintech portfolio.
Our Opinion on the News
CRED’s move to inject significant capital into NFPL highlights its ambition to expand within the digital lending space. Strengthening its NBFC arm allows CRED to diversify its revenue streams and enhance its competitive positioning in India's fast-growing fintech sector. As the regulatory landscape evolves, this investment could offer CRED a sustainable advantage in the lending market.