Non-banking financial company Newtap Finance Private Limited aims to raise Rs 550 crore (approximately USD64 million) from Newtap Technologies and CRED in the near to medium term.
CRED founder Kunal Shah’s Newtap Technologies holds the majority stake in Newtap Finance (formerly Parfait).
As per a press release by India Ratings and Research, promoters have invested Rs 149 crore in Newtap Finance during FY22-24, with CRED providing a primary infusion of Rs 35.7 crore so far.
Newtap Finance (NFPL) provides personal loans to individuals, with CRED acting as the loan service provider. CRED has 12 million monthly active users and offers a variety of services, including credit card payments, UPI transactions, vehicle management, lending, insurance, personal finance management through account aggregator rails, and rewards/deals.
Newtap Finance’s loan book is relatively new, but CRED pre-approves loans for select users based on their financial behavior. All CRED members with high credit scores qualify, which is a key eligibility criterion for the app.
Kunal Shah indirectly owns 76% of Newtap Finance through his fully owned entity, Newtap Technologies, while CRED holds a 23.6% stake. Shah and CRED took control of Newtap in 2022, but the RBI blocked CRED’s attempt to increase its stake in 2023. Since then, Newtap has focused on establishing itself as an independent NBFC.
As of December 2024, the entire AUM stands at Rs 1,141.6 crore for Newtap Finance. And NFPL already has Rs 632 crore. The company also partnered with a bank and NBFC major recently for co-lending and further plans to strengthen co-lending in the coming times.
At the end of December 2024, CRED reported an AUM (assets under management) of Rs 19,000 crore, with a non-performing asset (NPA) ratio of 1.1%, according to the press release.
The operating revenue of the company, backed by Tiger Global, increased 66% year on year for the fiscal year ending March 2024 at Rs 2,473 crore. Operating losses of the firm also declined by 41% in the same period.
