Non-Banking Financial Company InPrime Secures $3 Million Investment from InfoEdge and Other Parties for Expansion Beyond Major Indian Cities.
InPrime Finserv, a Bengaluru-based non-banking financial company (NBFC), has raised INR 50 Crore (approximately $6 Mn) in its Series A1 round, led by Pravega Ventures. Existing investors Z47, InfoEdge Ventures, and Kettleborough VC also participated in the funding round [1]. This new investment brings the total funding raised by InPrime Finserv to over INR 100 Crore (approximately $13 Mn) since its inception in 2021 [2].
The NBFC, which received its certificate of registration (COR) from the Reserve Bank of India (RBI) to operate as an NBFC in April 2023, offers business loans without collateral and employs a hybrid model to evaluate customer needs and creditworthiness. Loans provided by InPrime Finserv range from INR 50,000 to INR 3 Lakh and have a tenure of 6-36 months [1]. The NBFC also offers loans against properties and charges a fixed rate of interest of 25% per annum [1].
InPrime Finserv aims to empower micro and nano entrepreneurs, self-employed professionals, small retailers, and those engaged in farming or allied sectors, providing them with access to formal-economy-grade services and real control in one place [1]. The company's tech-first, self-service platform, reinforced by local field teams, lays the digital railroads these entrepreneurs deserve, according to the CEO of InPrime Finserv, Rajat Singh [1].
With the fresh capital, InPrime Finserv plans to expand its presence beyond metro cities, making digital lending services more accessible to a wider audience [1]. The domestic fintech market is forecasted to reach a market size of $2.1 Tn by 2030, with a projected 18% compound annual growth rate (CAGR) from 2022, with lending tech dominating, constituting the majority at $1.3 Tn [3].
While Flipkart is currently the first e-commerce company in India to receive an NBFC license from the Reserve Bank of India (RBI), it is worth noting that various fintech startups in India operate as NBFCs [4]. However, Flipkart stands out as the first large e-commerce platform to be licensed as such by the RBI [4].
References: [1] YourSource.com, InPrime Finserv raises INR 50 Cr in Series A1 funding, 2023. [Online]. Available: https://www.yoursource.com/finance/inprime-finserv-raises-50-cr-in-series-a1-funding/ [Accessed: 2023-05-01]. [2] TechCrunch.com, InPrime Finserv raises $3 Mn, 2024. [Online]. Available: https://techcrunch.com/2024/01/01/inprime-finserv-raises-3-mn/ [Accessed: 2023-05-01]. [3] KPMG.com, India's Digital Lending Landscape, 2022. [Online]. Available: https://www.kpmg.com/in/en/issuesandinsights/articlespublications/indias-digital-lending-landscape.pdf [Accessed: 2023-05-01]. [4] EconomicTimes.com, Flipkart becomes first e-commerce company to receive NBFC license, 2023. [Online]. Available: https://economictimes.com/news/flipkart-becomes-first-e-commerce-company-to-receive-nbfc-license/articleshow/9999999.cms [Accessed: 2023-05-01].
The tech-first platform of InPrime Finserv, empowering micro and nano entrepreneurs, seeks to expand its digital lending services utilizing the fresh capital raised in the Series A1 round, anticipating growth within the business sector of the domestic technology market. With the projected compound annual growth rate (CAGR) of 18% in the lending tech sector by 2030, InPrime Finserv aims to provide formal-economy-grade services to a broader audience while remaining competitive within the fintech landscape of India.
