Eight Roads Ventures Boosts Investment in Fibe with $90 Million Funding Round

Eight Roads Ventures, a leading global venture capital firm, has deepened its commitment to Pune-based consumer lending startup Fibe by participating in a substantial $90 million funding round. This round also saw contributions from Hong Kong’s TR Capital and existing investors such as Norwest Venture Partners, TPG Rise Fund, and Chiratae Ventures. This funding marks a critical juncture for Fibe as it navigates the complexities of the unsecured consumer lending market.

Formerly known as EarlySalary, Fibe has emerged as a significant player in the fintech sector, especially during a time when many lending startups face challenges in securing equity funding amid increased regulatory scrutiny from the Reserve Bank of India (RBI). Eight Roads Ventures’ heightened investment not only signals confidence in Fibe’s business model but also aligns with the firm’s strategic focus on high-growth opportunities in financial technology.

The $90 million funding round consisted of approximately $66 million in primary investments, with the remainder allocated to secondary share transactions, and Eight Roads Ventures being a key contributor to the primary capital. Their involvement is especially crucial given the current hurdles in the lending landscape, where many fintech companies focused on unsecured loans are facing stringent regulations and intensifying competition. This backing highlights Fibe’s strong operational performance and promising growth trajectory.

Akshay Mehrotra, co-founder of Fibe, emphasized the importance of Eight Roads Ventures in the company’s development. “Their strategic support has been invaluable as we expand our offerings and strengthen our market position. With their backing, we’ve proven our ability to navigate regulatory challenges while achieving profitability,” Mehrotra stated.

Fibe has reported impressive growth, with FY24 revenues nearing Rs 1,000 crore, up from Rs 429 crore in FY23. The company’s net profit has almost tripled to about Rs 100 crore, compared to Rs 36 crore the previous year. By the end of FY24, Fibe’s assets under management (AUM) reached around Rs 4,400 crore, with monthly disbursements ranging from Rs 900 crore to Rs 1,000 crore. These figures illustrate Fibe’s transition from offering small, short-duration personal loans to a wider array of financial products, including longer-tenure loans, co-branded credit cards, and financing solutions for healthcare and education.

The backing from Eight Roads Ventures will enable Fibe to scale operations and enhance its technological capabilities, particularly as consumer lending startups increasingly harness data analytics and machine learning to refine their services. With this new capital, Fibe is well-positioned to secure additional debt from lending partners, facilitating continued growth in a competitive environment.

Eight Roads Ventures’ increased investment in Fibe underscores the startup’s solid market presence and innovative approach to consumer lending. As Fibe tackles regulatory shifts and evolving market dynamics, this strategic investment will be crucial in advancing its mission and solidifying its status as a key player in the fintech sector. With strong investor support and a commitment to responsible lending, Fibe is well-equipped to meet the changing needs of consumers and expand its market footprint.