Team Startupcity

•  FincFriends raises Rs 41.5 crore debt funding to expand lending in Tier II and Tier III cities.
•  Investors include IBL Finance, Moneywise Financial Services, and Usha Financial Services.
•  RupeeRedee platform aims to democratize credit access for underserved borrowers via fully digital unsecured loans.
FincFriends, a non-banking financial company (NBFC) which is registered with RBI, has raised Rs 41.5 crore in debt from current investors in the first quarter of the fiscal year 2025–26 to increase its presence in smaller cities and towns. 
The most recent funding round comes after a prior Rs 98.5 crore ($11.2 million) debt raise in the last fiscal's fourth quarter. Major investors of the new tranche are IBL Finance, Moneywise Financial Services, Usha Financial Services, Shine Star Build Cap, Realtouch Finance, and UC Inclusive Credit.

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Artem Andreev, FincFriends' CEO, said, 

This funding brings us one step closer to our vision of democratizing access to credit for under-served segments. With the continued trust of our lending partners and investors, we are confident that our RupeeRedee platform will be a transformative force in redefining India's digital lending industry.

Based in 2017, FincFriends runs RupeeRedee, a completely digital lending platform providing unsecured loans to focus mainly on Tier II and Tier III markets where borrowers tend to be underserved by mainstream financial organizations.

This is part of a larger trend for India's digital lending scene, with startups such as AI-powered lender Zype recently raising Rs 90 crore in Series B funding to scale up in comparable markets. Also, EarlySalary Services, the lending unit of Fibe, issued Rs 225 crore of July NCD as part of credit expansion and loan book growth. These happenings highlight consistent investor confidence in India's digital lending space in the face of a wary credit environment.