Finnable, a consumer lending platform focused on India’s salaried professionals, has closed an equity round of roughly $60 million led by Z47 and TVS Capital. The company says the capital will accelerate product expansion, technology investments, and market reach across underserved segments. The announcement underscores Finnable’s push to make responsible credit access both inclusive and scalable in a fast-growing economy.
Market Focus
Finnable targets mid-income salaried workers who earn about $180 to $600 per month, a cohort that often straddles formal banking and informal credit. By streamlining access to personal loans, the company aims to convert first-time borrowers into long-term, disciplined customers. Management positions this segment as large, underpenetrated, and ready for transparent pricing and faster approvals.
Performance and Financial Discipline
The lender reports an AUM of approximately $374 million, achieved with what it describes as minimal equity burn and a pivot to profitability last year. Asset quality remains a headline metric, with a gross non-performing asset ratio of 1.1 percent that the company says is below industry averages. In September 2025, Finnable received a first-cycle BBB+ credit rating from CARE Ratings, placing it among a small group of young NBFCs to reach that bar early.
Phygital Model
Finnable’s operating model blends instant digital underwriting with physical verification and in-person collections. Every collections executive is on payroll, a choice intended to tighten controls, reduce delinquencies, and strengthen borrower relationships. The company argues that this hybrid approach delivers speed without compromising compliance or repayment behavior.
Founder Commentary
Co-founder and CEO Nitin Gupta says the business was designed to earn trust before scale, anchoring growth in transparency and measurable outcomes. He frames the BBB+ rating as validation that a fintech can operate quickly while maintaining rigorous risk standards. Co-founder Amit Arora adds that Finnable’s mix of technology, data, and human touch has produced sustainability at scale, with plans to serve more than one million customers over the next four years.
Customer Behavior and Risk
Finnable reports that 65 percent of its users are taking a personal loan for the first time, yet their repayment track record aligns with seasoned borrowers. Management attributes this to data-driven underwriting and calibrated product design, supported by on-ground processes that catch early warning signals. The company believes this evidence strengthens the case for expanding responsibly into adjacent credit products.
Investor Perspective
Z47 Managing Director Vikram Vaidyanathan cites AI-enabled risk tools, phygital distribution, and a conservative stance on asset quality as reasons to back Finnable’s next phase. Z47, founded in 2006, has made more than 150 investments and manages over $3.5 billion, and says it is doubling down as Finnable introduces products aligned to customer life goals. TVS Capital Managing Partner Krishna Ramachandran highlights a capital-efficient model tailored to employees of MSMEs, noting strong underwriting and a pipeline of products for overlooked credit white spaces.
Use of Proceeds and Roadmap
The new capital will fund product diversification, technology modernization, and deeper penetration across priority employer networks and cities. Finnable also plans to expand its loan book toward about $1.2 billion over time, while preserving unit economics that support profitable growth. Management emphasizes responsible access as a core principle, saying long-term customer success will drive retention and lower risk.
Context on Backers
TVS Capital Funds has a 17-year track record in financial services and technology and currently manages roughly $600 million across its third and fourth funds. The firm positions itself as a partner to next-generation Indian entrepreneurs and focuses on research-led investing. Z47 describes its philosophy as founders first, backing teams building toward India’s developed-nation ambitions by 2047.
Finnable’s latest raise adds fresh capital to a model built around disciplined risk, hybrid distribution, and a deliberately targeted customer base. Early profitability, stable asset quality, and a first-cycle BBB+ rating offer credibility as the company chases scale. If execution holds, Finnable’s combination of technology and on-ground operations could push responsible credit deeper into India’s mid-income workforce.