🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥
Login

News on Medial

Related News

Kunal Shah’s CRED and Newtap to lead Rs 550 Cr investment in NBFC arm

EntrackrEntrackr · 6m ago
Kunal Shah’s CRED and Newtap to lead Rs 550 Cr investment in NBFC arm
Medial

Non-banking financial company Newtap Finance Private Limited is planning to raise Rs 550 crore (around $64 million) from Newtap Technologies and CRED in the near to medium term. CRED founder Kunal Shah’s Newtap Technologies is the majority shareholder in Newtap Finance (formerly Parfait). According to a press release by India Ratings and Research, during FY22-24, promoters have invested Rs 149 crore in Newtap Finance, with CRED contributing a primary infusion of Rs 35.7 crore to date. Newtap Finance (NFPL) offers personal loans to individuals, with CRED serving as the loan service provider. CRED has a monthly active user base of 12 million and provides a range of services, including credit card payments, UPI transactions, vehicle management, lending, insurance, personal finance management via account aggregator rails, and rewards/deals. Newtap Finance’s loan book lacks seasoning, but CRED pre-approves loans for select users based on their financial behavior. All CRED members qualify with high credit scores, which is a key eligibility criterion for the app. Kunal Shah indirectly owns 76% of Newtap Finance through his fully owned entity, Newtap Technologies, while CRED holds a 23.6% stake. Shah and CRED gained control of Newtap in 2022, but the RBI blocked CRED's bid to raise its stake in 2023. Since then, Newtap has worked to establish itself as an independent NBFC. At the end of December 2024, the total AUM outstanding on Newtap Finance’s platform was Rs 1,141.6 crore, of which Rs 632 crore was on NFPL’s books. NFPL has also partnered with two large lenders—a bank and an NBFC—for co-lending and plans to scale up co-lending in the near term. As of December 2024, CRED had an AUM (assets under management) of Rs 19,000 crore, with an NPA (non-performing asset) of 1.1%, the press release added. During the fiscal year that ended in March 2024, CRED reported a 66% year-on-year growth in its operating revenue to Rs 2,473 crore. Moreover, the operating losses for the Tiger Global-backed company reduced by 41% in the same period.

Navi's FY24 operating profit falls 50% as loan write-offs surpass Rs 400 Cr

EntrackrEntrackr · 10m ago
Navi's FY24 operating profit falls 50% as loan write-offs surpass Rs 400 Cr
Medial

Navi Finserv, led by Flipkart co-founder Sachin Bansal, faced challenges scaling its revenue and profitability in the fiscal year ending March 2024. Despite a 6.6% decrease in scale, Navi’s operating profit declined by more than 50%, driven by a fall in collections and an increase in loan write-offs (bad debt). Navi’s revenue from operations decreased to Rs 1,906 crore in FY24 from Rs 2,041 crore in FY23, according to its consolidated annual report. It offers services such as personal and home loans, bill payments, insurance, digital gold, and mutual funds. Interest income made up 84.5% of the total revenue but saw a decline of 12.3%, reaching Rs 1,611 crore in the last fiscal year (FY24). Fees, commissions, gains on fair value, and other financial instruments brought Navi’s total income to Rs 1,909 crore in FY24, down from Rs 2,078 crore in FY23, reflecting an 8.1% year-on-year decrease. As with other lending companies, finance costs were the largest expenditure for Navi, accounting for 37.6% of total expenses. These costs also decreased by 4.8%, reaching Rs 658 crore in FY24. Additionally, Navi reduced employee benefits by 41.9%in FY24. Notably, the firm’s loan write-offs surged 3.2X to Rs 406 crore in FY24, up from Rs 125 crore in FY23. Fees, commissions, software, legal expenses, customer onboarding, and other costs pushed total expenditure to Rs 1,750 crore in FY24. Navi’s shrinking scale and major write-offs led to a 56% decline in operating profits, dropping to Rs 159 crore from Rs 335 crore in FY23. Despite this, the company posted a net profit of Rs 545 crore in FY24, largely due to Rs 429 crore gained from the sale of Svatantra Microfin, a former subsidiary. Svatantra Microfin was sold to Chaitanya India Fin Credit for a total consideration of Rs 1,166 crore in November 2023. FY23-FY24 FY23 FY24 EBITDA Margin 16.89% 9.80% Expense/₹ of Op Revenue ₹0.85 ₹0.92 ROCE 12.80% 5.39% According to Entrackr, Navi’s ROCE and EBITDA margins worsened to 5.39% and 12.80%, respectively. On a unit level, it spent Re 0.92 to earn a rupee in the fiscal year ending March 2024.

Download the medial app to read full posts, comements and news.