In a strategic move amid India’s booming digital lending ecosystem, fintech lender Stashfin has raised INR 78.8 crore (~USD 9.3 million) in debt from a clutch of investors, including Northern Arc Capital and Coinmen Special Opportunities Fund, according to regulatory filiings. The latest infusion forms part of a broader INR 160+ crore debt raise in Q4 FY25 as the company looks to scale operations and enhance its product offerings.
The capital was secured through a mix of secured, listed non-convertible debentures (NCDs), pass-through certificates, and commercial papers. Other participants in the round included Asvanta Financial Consultants, Infixin Technologies, and AlgoBulls Technologies.
Capex Expansion and Credit Disbursal Plans
According to co-founder and CEO Tushar Aggarwal, the fresh funds will primarily support capital expenditure and loan book expansion. “We raised INR 160 Cr+ via term loans, listed NCDs, and other instruments to fuel our next phase of growth,” Aggarwal said. Stashfin disbursed over INR 3,500 crore in loans in 2024 alone, with cumulative disbursals crossing INR 13,000 crore since inception.
This funding marks another milestone in Stashfin’s evolving financial journey. In March 2023, the firm secured USD 100 million (~INR 855 crore) in debt from InnoVen Capital and Trifecta Capital, just months after a USD 270 million (~INR INR 2,310 crore) Series C equity round in June 2022 that valued the company at over USD 700 million (~INR 5,990 crore).
Profit Surge and Growing Revenue
The Delhi-headquartered fintech—acquired by Singapore’s Morus Technologies in 2017—has shown remarkable financial growth. In FY24, Stashfin’s revenue surged to INR 800 crore, a dramatic leap from INR 21 crore in FY21. Its profits followed suit, climbing to INR 68 crore in FY24, up from a modest INR 1.8 crore in FY21. For the first nine months of FY25 alone, the company reported an adjusted pre-tax profit of INR 90 crore on INR 585 crore revenue.
Diversified Offerings and New Growth Horizons
Founded in 2016 by Tushar and Shruti Aggarwal, Stashfin initially offered credit line-linked Visa cards with EMIs up to INR 5 lakh. Since then, the company has ventured into insurance, payments, commerce, and corporate bond solutions. One of its flagship initiatives, the Sentinel Program, caters specifically to India’s defence personnel and veterans, now accounting for 20% of its portfolio.
In a strategic shift, Stashfin is preparing to enter the UPI-based credit and payments space, targeting a market dominated by PhonePe and Google Pay—which together held 83% market share as of April 2025. The company is in the process of acquiring a TPAP (Third-Party Application Provider) license from NPCI, with plans to launch UPI credit solutions, though timelines remain undisclosed.
ESOPs and Employee Retention Amid IPO Buzz
In line with industry trends, Stashfin also rolled out a INR 600 crore ESOP pool in January 2025. Employees with five years of tenure were granted INR 5 lakh worth of stock options, while those with three years received INR 3 lakh. The move is designed to retain top talent as the company inches closer to a potential IPO, aligning with the growing practice among Indian startups preparing for public listings.
“Every teammate is a key contributor. This ESOP allocation reflects our commitment to rewarding long-term value creation,” Aggarwal said in an internal communication.
Northern Arc Capital
Northern Arc Capital launched its IPO on 16 September 2024, with an issue size of INR 777 crore. The IPO got massive subscription of 110X and delivered an impressive 22.97% returns on listing day. However, Northern Arc Capital post-IPO performance was very disappointing; the stock tanked ~51% from its all-time high of INR 350 per share. Notably, ace investor Ashish Dhawan acquires 2.2% stake in Northern Arc Capital on 9 April 2025.
Positioning for the Fintech IPO Wave
The capital raise comes at a pivotal time. India’s digital lending market is projected to soar from USD 402 billion (~INR 34.40 lakh crore) in 2024 to USD 1.3 trillion (~INR 111.26 lakh crore) by 2030, growing at a CAGR of 22%. Competitors like Kissht (which plans a USD 225 million (~INR 1,925 crore) IPO by mid-2025) and Navi, led by Sachin Bansal (eyeing a USD 200–300 million (~INR 2,567 crore) raise), are also aggressively capitalizing on the momentum. Meanwhile, MobiKwik, which went public in 2024, recently launched its own NBFC arm, indicating increasing overlap between fintechs and traditional lending.
Looking Ahead
With over INR 6,000 crore raised across equity and debt rounds, a growing loan portfolio, and upcoming UPI integrations, Stashfin is positioning itself as a formidable force in India’s next-generation credit ecosystem. Its listing of NCDs on the BSE also marks a noteworthy precedent—it is reportedly the first NBFC to do so after SEBI’s regulation changes lowering the minimum face value to INR 10,000.
As India’s fintech sector matures, Stashfin’s blend of strategic funding, product innovation, and user-focused services could well place it at the frontlines of the country’s ongoing financial transformation.
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