Non-banking financial firm Newtap Finance (NFPL) plans to raise Rs. 550 crore (approximately $64 million) from Newtap Technologies and CRED in the near to medium term.

Newtap Technologies, founded by CRED’s Kunal Shah, is the majority shareholder in NFPL, previously known as Parfait.

According to India Ratings and Research, promoters invested Rs. 149 crore in NFPL between FY22 and FY24, with CRED contributing Rs. 35.7 crore as a primary infusion.

Newtap Finance specializes in providing personal loans, with CRED acting as the loan service provider. CRED, which has 12 million monthly active users, offers various financial services, including credit card payments, UPI transactions, lending, insurance, vehicle management, personal finance tools, and rewards.

Although NFPL’s loan book is still maturing, CRED pre-approves loans for selected users based on financial behavior. Only users with high credit scores qualify for CRED’s services.

Kunal Shah indirectly owns 76% of NFPL through his wholly owned entity, Newtap Technologies, while CRED holds a 23.6% stake. Shah and CRED took control of Newtap in 2022, but in 2023, the RBI prevented CRED from increasing its stake. Since then, NFPL has focused on operating as an independent NBFC.

As of December 2024, NFPL’s total AUM was Rs. 1,141.6 crore, with Rs. 632 crore on its books. The company has partnered with a bank and an NBFC for co-lending and aims to expand this further.

CRED had an AUM of Rs. 19,000 crore with an NPA of 1.1% at the end of December 2024, according to the press release.