Neobanking startup Stashfin has raised $270 million in its Series C round led by investors including Uncorrelated Ventures, Fasanara Capital and Abstract Ventures. Existing investors including Altara Ventures, Kravis Investment Partners, and Snow Leopard also participated in the round.
The round which was a mix of debt and equity brings the platform closer to the unicorn tag, valuing it at $700-800 million despite an overall slowdown in funding as investors turned cautious amid rising inflation and interest rates and falling stock markets.
StashFin plans to use the funds to expand its footprint in South and Southeast Asia, and upgrade its technology for new products, it said.
Founded by Tushar Aggarwal in 2016, Stashfin extends credit line-linked Visa cards, that are issued by its partner bank SBM Bank India, to customers with loans of up to Rs 5 lakh. Its Credit Line Cards allow users to avail instant credit with minimum paperwork as well as transact across channels, including free ATM withdrawals, virtual and physical card with exclusive rewards and offers across shopping, dining, traveling and other needs.
Stashfin offers customized solutions to its customers powered by its proprietary AI-based technology. The startup recently launched #LiveBoundless – a credit line card for women.
“The company has registered nearly 10 million customers on its platform since inception and is projected to grow 4-5x this year, with ARR expected to grow to $400 million over the next 12-18 months. The company has already turned profitable. We are now at the cusp of transforming into a compound startup, offering multiple financial products for consumers with a wide spectrum of credit risks,” Aggarwal said.
“Digital retail lending in India is growing fast. StashFin’s underwriting platform is not only profitable, but scales with unit economics amid challenging market conditions. There are many players in the neobanking space, but few share the commitment and ability to serve the underserved and unserved segments that traditional banks and neobanks ignore,” said Salil Deshpande, founder and general partner, Uncorrelated Ventures.