Home Credit India Finance Pvt. Ltd., one of India’s fastest growing non-banking finance company, today announced that it has raised over INR 6 billion (Rs. 600 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 of 3.2 billion (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 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 nearly 2 million in 2016, 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 across APAC, including 216% growth in India, 180% growth in Indonesia and a 220% increase in the Philippines.
About Home Credit India
Home Credit India Finance Pvt. Ltd. is a leading consumer finance provider that is committed to drive credit penetration and financial inclusion by offering financial solutions that are simple, transparent and accessible to all. One of India’s leading non-banking financial companies (NBFCs), Home Credit India has its operations in over 110 cities across 20 states in the country. The company has a strong network of more than 23,000 points-of-sale (PoS) from where it serves over 6 million customers. The company’s employee base stands at over 18,000. Home Credit India has been recognized by Aon Hewitt as a Regional AON Best Employer 2017 for employer excellence.
For more information, please visit www.homecredit.co.in.
About Home Credit Group
Home Credit India is part of Home Credit Group, an international consumer finance provider with operations in 10 countries where there is high potential to grow. Founded in 1997, we focus on responsible lending primarily to people with little or no credit history. Our services are simple, easy and fast. We operate in highly attractive markets with significant barriers to entry. We are a leading provider of consumer finance in selected countries. It is our experience and knowledge across the different markets, which sustainably puts us ahead of our competitors. We drive and broaden financial inclusion for the unbanked population by providing a positive and safe borrowing experience – the first for many of our customers. We promote higher living standards and meet borrowers’ financial needs. Our 1,57,700 employees have so far served over 97 million customers through a vast distribution network comprising nearly 4,00,000 points of sale, loan offices, branches and post offices.
For more information, please visit www.homecredit.net.