One of India’s fastest growing non-banking finance company, Home Credit India Finance Pvt. Ltd., today announced that it has raised over INR 6 billion (Rs600 crore) through a mix of innovative securitization transactions, terms loans, and non-convertible debenture (NCD) issue during January – Mar 2018.
The funds will be primarily utilized for supporting the rapid growth of business and expanding operations across India. Of the total amount raised, nearly INR 2.8 billion (Rs 280 crore) has been raised through securitization of consumer durables and cross-sell personal loans. The balance financing of3.2billion (Rs320 crore) has been raised through multiple term loans and a NCD.
While the securitization issues were subscribed by investors like DCB Bank and Hinduja Leyland Finance Limited, term loans were raised from a clutch of leading financial institutions such as IFMR Capital, Tata Capital, and JM Financial. The tenor of these transactions ranges from 5 months to 3 years. With this round of funding, Home Credit India plans to augment its loan book, invest in technology infrastructure, and develop innovative financing products that broadens financial inclusion and positions the company as a global fintech player.
Speaking on the fund raising, Anirban Majumder, Chief Financial Officer, Home Credit India, “For Home Credit, India is a strategically important market. To support the growth of our business in the medium term, we will continue to diversify our funding base in terms of innovative financing instruments and maturity, and to attract flexible and stable funding sources based on long-term, mutually beneficial relationships with investors. The funding will further enable us to make our loans accessible to underserved segments of population, build their credit history, and promote responsible lending.”
“Hinduja Leyland is delighted to be associated with Home Credit India and we hope our financing for the consumer durables loan securitization is the beginning of a long and mutually beneficial business relationship,” said Mr. Sachin Pillai, CEO, Hinduja Leyland Finance.
In 2017, Home Credit had raised nearly INR 870 million (Rs 87 crore) through two 2-wheeler loan securitization transactions. In a first ever deal of its kind, the company also raised INR 1.53 billion (Rs 153 crore) through a consumer durables loan securitization in November last year.
Since its launch in India in 2012, Home Credit India has been consistently expanding operations with a customer base of over 6 million as of date. The company had a customer base of nearly2million in2016, driven by pan-India expansion across major markets, a range of diversified and innovative products backed by superior customer experience. In 2017 alone Home Credit added another 3.5 million customers, further consolidating its position as a leading consumer finance provider.
Home Credit Group is developing its footprint in Asia’s fast-growing and high-potential markets and in the U.S., while maintaining its role as a market leader in Central and Eastern Europe and CIS. Its distinctive business model of providing consumer finance products which are easily accessible even at the lower end of the economic scale is a formula which has been successfully rolled out in China, India and South East Asia. Home Credit Group has developed both bricks-and-mortar and online distribution that makes it very attractive to manufacturers and retailers who are seeking a consumer finance partner. This in turn supports the rapid development of Home Credit’s loan portfolio. In 2017, Home Credit delivered strong new loan volumes