NEW DELHI: Consumer finance provider, Home Credit India Finance, today said it has raised over Rs 600 crore through a mix of innovative securitization transactions, terms loans, and non-convertible debenture (NCD) issue during January – Mar 2018.
The funds, according to a release, will be primarily utilized for supporting business growth and expanding operations across India. Of the total amount raised, nearly Rs 280 crore has been raised through securitization of consumer durables and cross-sell personal loans. The balance financing of Rs 320 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, term loans were raised from a clutch of financial institutions such as IFMR Capital, Tata Capital, and JM Financial. The tenor of these transactions ranges from five months to three years. With this round of funding, Home Credit India plans to augment its loan book, invest in technology infrastructure, and develop financing products that broadens financial inclusion and positions the company as a global fintech player.
Anirban Majumder, CFO, Home Credit India said, “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 Sachin Pillai, CEO, Hinduja Leyland Finance.
In 2017, Home Credit had raised nearly Rs 87 crore through two 2-wheeler loan securitization transactions. In a first ever deal of its kind, the company also raised Rs 153 crore through a consumer durables loan securitization in November last year.