Summary:

  • Digital lending platform Fibe, formerly known as EarlySalary, has successfully raised Rs 547 crore

  • The round is led by TPG’s The Rise Fund and Kabira Holdings

  • The company plans to utilize the raised funds for expansion and growth


Digital lending platform Fibe, formerly known as EarlySalary, has successfully raised Rs 547 crore (approximately $66 million) in its Series E funding round. This significant investment was led by TPG’s The Rise Fund and Kabira Holdings, marking the first round of funding for the Pune-based company in the last two years.
According to regulatory filings accessed from the Registrar of Companies (RoC), the board at Fibe has approved a special resolution to issue 5,46,75,600 Series E CCPS (Compulsorily Convertible Preference Shares) at an issue price of Rs 100 each, thereby raising Rs 547 crore.
The funding round saw a substantial contribution from The Rise Fund, which invested Rs 133 crore ($16 million). Kabira Holdings followed closely with an investment of Rs 125 crore ($15 million). Other participants included Eight Road Ventures, Norwest Capital, and Trifecta, contributing Rs 41.6 crore ($5 million), Rs 62.5 crore ($7.5 million), and Rs 55 crore ($6.6 million) respectively. Additionally, Amara Partners and Chiratae Ventures also joined the round, investing Rs 29.17 crore and Rs 100 crore respectively.
The company plans to utilize the raised funds for expansion and growth, adhering to the business plan approved by the board. The recent influx of capital has propelled Fibe’s post-money valuation to approximately $590-600 million, a notable increase from its $350 million valuation during the Series D round.
Following this fresh infusion of funds, TPG’s The Rise Fund now holds a 22.72% stake in Fibe. Other significant shareholders include Eight Road Ventures with 15.8%, Norwest Capital with 13.58%, Chiratae Ventures at 9.59%, and Kabira Holdings at 6.01%.
In the previous Series D round held in August last year, Fibe had raised $110 million, led by TPG’s The Rise Fund and Norwest Venture Partners. With the completion of the Series E round, Fibe has now raised over $200 million in total funding to date.
Despite the successful fundraising, Fibe’s financial performance presents a mixed picture. The company managed to increase its operating revenue by 2.3 times in the fiscal year ending March 2023. However, this growth came at the cost of increased losses, which surged more than ninefold during the same period. According to data from TheKredible, a startup data intelligence platform, Fibe’s operating revenue stood at Rs 414 crore in FY23, while its losses escalated to Rs 36 crore.
Fibe operates in a competitive landscape, contending with other consumer lending firms such as Slice, LoanTap, PaySense, MoneyTap, and IndiaLends. The company’s ability to secure significant funding reflects investor confidence in its growth potential and strategic vision, despite the challenges in managing profitability.
In summary, Fibe’s latest Series E funding round marks a pivotal moment in its journey, providing the necessary capital to fuel its expansion plans and solidify its position in the competitive digital lending market. With the backing of prominent investors and a robust business strategy, Fibe is well-positioned to navigate the challenges and opportunities that lie ahead.