Indian fintech startup Stashfin has secured fresh debt funding of INR 78.8 crore (approximately $9.3 million) from prominent investors including Northern Arc and Coinmen Special Opportunities Fund. This capital was raised in multiple tranches since January 2025 through a mix of secured listed non-convertible debentures (NCDs), pass-through certificates, and commercial papers, according to regulatory filings from the Registrar of Companies (RoC). Additional investments came from Asvanta Financial Consultants, Infixin Technologies, and AlgoBulls Technologies among others.
Strategic Capital Infusion to Support Growth and Lending
Stashfin’s cofounder and CEO Tushar Aggarwal revealed that the company raised over INR 160 crore in the fourth quarter of FY25 through a combination of term loans, secured NCDs, pass-through certificates, and commercial papers from various lenders and investors. The fresh funds are primarily earmarked for capital expenditure (capex) and expanding credit disbursal to borrowers, enabling Stashfin to strengthen its lending capabilities and operational infrastructure.
Impressive Loan Disbursal Milestones and Diverse Customer Base
In 2024 alone, Stashfin disbursed loans worth around INR 3,500 crore, contributing to a total disbursal portfolio of INR 13,000 crore since its inception in 2016. Initially launched as a credit line-linked Visa card provider offering EMI-based loans up to INR 5 lakh, Stashfin has diversified into insurance, payments, commerce, and corporate bond solutions.
The company’s core clientele consists mainly of young professionals aged 25 to 28, who use loans for home improvement, education fees, and skill development courses. Notably, Stashfin’s ‘Sentinel Program’ caters to India’s defence personnel and veterans, now accounting for 20% of its loan portfolio – a unique offering that underscores its commitment to social responsibility.
Eyeing the UPI Market with TPAP Licence
Stashfin is actively preparing to enter the booming UPI (Unified Payments Interface) ecosystem by securing a Third-Party Application Provider (TPAP) licence from the National Payments Corporation of India (NPCI). This licence will allow Stashfin to offer UPI-based credit and payment solutions, integrating seamless digital payments with its lending services.
While the UPI market is currently dominated by giants like PhonePe and Google Pay, which together hold over 80% market share, Stashfin’s entry aims to carve a niche by combining credit access with instant payments. CEO Aggarwal confirmed that the company is in the process of launching its UPI services, though no specific timeline has been disclosed yet.
Pioneering Debt Instruments and Regulatory Advantages
Stashfin is the first non-banking financial company (NBFC) in India to offer NCDs on the Bombay Stock Exchange (BSE), leveraging recent Securities and Exchange Board of India (SEBI) rule changes that lowered the minimum face value of debt securities from INR 1 lakh to INR 10,000. This innovative approach helps Stashfin diversify and expand its capital pool efficiently.
Robust Financial Performance and Market Position
The fintech startup has witnessed exponential growth in recent years, with revenue soaring to INR 800 crore in FY24 from just INR 21 crore in FY21. Its profit surged to INR 68 crore in FY24 from INR 1.8 crore in FY21. For the nine months ending December 2024 (9M FY25), Stashfin reported an adjusted pre-tax profit of INR 90 crore on total revenue of INR 585 crore, highlighting its strong financial health and operational efficiency.
Competing in India’s Booming Digital Lending Space
Stashfin competes with other leading fintech NBFCs such as Kissht, CASHe, Fibe, and Navi in India’s rapidly growing digital lending market, which is expected to expand from over $400 billion in 2024 to more than $1.3 trillion by 2030 at a CAGR of 22%. The sector is witnessing heightened investor interest, with companies like Kissht planning IPOs and Navi raising substantial funds ahead of their public listings.
Looking Ahead: Growth and Innovation on the Horizon
With its strong capital base, innovative product offerings, and strategic expansion plans including UPI integration, Stashfin is well-positioned to capitalize on India’s fintech boom. The company aims to enhance financial inclusion by providing accessible credit and seamless payment solutions to a diverse customer base, driving India’s digital economy forward.
In conclusion, Stashfin’s recent INR 79 crore debt raise from Northern Arc and other investors marks a significant milestone in its growth journey. By leveraging innovative funding instruments and expanding into the UPI ecosystem, Stashfin is set to strengthen its leadership in India’s digital lending landscape, empowering millions with flexible credit and payment solutions.