Pune-based fintech giant Fibe, earlier known as EarlySalary, has secured ₹225 crore (about $25 million) in debt via non-convertible debentures (NCDs). Major institutions like Franklin Templeton Alternative Investment Fund led the investment, reflecting strong confidence in Fibe’s growth prospects. Each debenture was issued at a face value of ₹1 lakh, intended to support the company’s rapid scale-up in the digital lending space.
Fibe’s Mission: Fast Loans for New India
Founded in 2015 by Akshay Mehrotra and Ashish Goyal, both with deep experience in the BFSI sector, Fibe offers short-term and long-term loans, including cash loans, personal loans, a buy-now-pay-later model, and instant salary advances. The company aims to serve tech-savvy, salaried Indians who seek hassle-free access to credit. Users can get loans between ₹5,000 and ₹5,00,000 through its digital platform, making funds available quickly and transparently.
Impressive Financial Growth in FY24
Fibe’s financial journey has gathered steam. Its NBFC arm, EarlySalary Services Pvt. Ltd., recorded a 170% jump in operating revenue, soaring from ₹261 crore in FY23 to ₹704 crore in FY24. The company turned a profit after tax of ₹55 crore in FY24, a major turnaround from a net loss of ₹10 crore the year before. This improvement was powered by efficient growth, strong underwriting, and a surge in demand for digital lending products.
Funding and Expansion Plans
This recent debt round takes Fibe’s total funding to $233 million since its inception, including a $90 million Series E round in 2024 backed by leading investors such as TR Capital, Trifecta Capital, and Amara Partners. Fibe is also in talks to raise an additional $35 million led by International Finance Corporation (IFC), underlining its ambitions for even greater market penetration and innovative financial products.
India’s Digital Lending Industry: Incredible Opportunity
The broader Indian digital lending market is witnessing explosive growth. In 2024, Indian digital lending platforms generated revenues of nearly $439 billion and are expected to scale up rapidly thanks to AI, machine learning, and advanced digital infrastructure. Nearly 65% of all loans from this segment are driven by tech innovations, making India the fastest-growing digital lending market in the Asia-Pacific region. The Buy-Now-Pay-Later sector grew by 65% in 2024, indicating strong demand for new-age lending products.
Fierce Competition with an Eye on IPO
Fibe faces tough competition from brands like PaySense, ZestMoney, Daily Salary, and Refyne. But with its robust growth, innovative offerings, and highly positive investor sentiment, Fibe is now among the country’s top tech lenders. There’s even talk that Fibe could join the IPO race in the next 1-2 years, riding on its recurring profitability and expanding loan book.