Home Credit India raises Rs 6 Bn till Mar 2018
Published: May 24, 2018
By TIOLCORPLAWS News Service
NEW DELHI, MAY 24, 2018: THE Leading consumer finance provider, Home Credit India Finance Pvt Ltd, had raised over Rs 6 billion through a mix of innovative securitization transactions, terms loans, and non-convertible debenture (NCD) issue during January – Mar 2018. The funds would be primarily utilized for supporting the rapid growth of business and expanding operations across India. Of the total amount raised, nearly Rs 2.8 billion had been raised through securitization of consumer durables and cross-sell personal loans. The balance financing of Rs 3.2 billion had been raised through multiple term loans and a NCD.
While the securitization issues were subscribed by investors like DCB Bank and Hinduja Leyland Finance Ltd, term loans were raised from a clutch of leading financial institutions such as IFMR Capital, Tata Capital, and JM Financial. The tenor of those transactions ranges from 5 months to 3 years. With that 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.
In 2017, Home Credit had raised nearly Rs 870 million through two 2-wheeler loan securitization transactions. In a first ever deal of its kind, the company also raised Rs 1.53 billion through a consumer durables loan securitization in November last year. Since its launch in India in 2012, Home Credit India had 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 had been successfully rolled out in China, India and South East Asia. Home Credit Group had 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.
