Stashfin, a Singapore-headquartered neo-banking startup that currently focuses on customers in India, has announced raising $270 million in equity and debt as part of its Series C funding round.
The company, founded in 2016, raised $70 million in equity funding, anchored by Uncorrelated Ventures and Fasanara Capital, and another $200 million in credit facility, according to the announcement.
Abstract Ventures, Altara Ventures, Kravis Investment Partners, and Snow Leopard also participated in the funding round that Stashfin said will be used to expand its footprint in Southeast and South Asia. Tencent invested in the form of a convertible debt instrument.
The latest funding round values Stashfin between $700 million and $800 million and comes 14 months after it raised $40 million in a Series B extension round.
Since its inception, Stashfin said it has been working towards the financial inclusion of various customer segments who find it hard to be accepted by traditional banking systems.
The company also helps the under-represented build their credit footprint to enable them to improve their quality of life.
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.
In the past twelve months, Stashfin saw 10x growth in its monthly business and is currently nearing an Annualized Revenue Run Rate (ARR) of $100M. The company has registered nearly ten million customers on its platform.
“Stashfin began with the purpose to serve the underserved and unserved segments of our society, and it’s heartening to see this manifesting in rapid business growth impacting millions of our customers’ lives,” founder and CEO Tushar Aggarwal said.
While the company has already built a significant presence in India ever since its foray into the country in 2018, it is now looking to tap newer markets in South Asia with a special focus on Nepal and Sri Lanka to begin with.
In Southeast Asia, it recently did a pilot project in the Philippines. In India, the startup competes with the likes of Lendingkart, FlexiLoans, KredX, and Capital Float, among others.
Aside from expanding its footprint in Southeast and South Asia, Stashfin said it will use the fresh funds to upgrade its technology for new products.