They aim to offer specific financing for education, medical, Electric vehicles, and home renovations.
Credit Fair, a consumer lending fintech start-up has secured undisclosed debt from Northern Arc to help underserved Indians from Tier II and Tier III cities to move up the credit ladder. They aim to offer specific financing for education, medical, Electric vehicles, and home renovations. For small businesses and going to grow middle- and lower-income users, they plan to offer expanded credit products via their mobile app to enable digital financial services. Till now over 30,000 customers have already benefitted from Credit Fair’s digitalized and automated service.
Commenting on the funding initiative, Aditya Damani, Founder of Credit Fair said, “We will benefit from Northern Arc’s experience in advising hundreds of leading companies in financial services. Besides the injection of funds, they will advise us on optimizing our debt-raising strategy. This alliance is a critical step in expanding our products and services across all market categories, enabling our customers to benefit and bolstering our position as the preferred lender.”
Bama Balakrishnan, COO, Northern Arc, said “Northern Arc’s impetus has always been to find high-quality institutions at an early stage and partner with them to support their growth. The partnership extends well beyond financing, as we help our partners put in place best-in-class processes and frameworks, strategize fundraising and provide inputs on technology solutions.”
After the funding announcement, Credit Fair is looking to expand its portfolios with arrays of products and services by partnering with other NBFCs. As a part of product innovation, Credit Fair has introduced an income introduced income sharing agreement that agreement, that allows students to continue their education without financial constraints. They have collaborated with another Fintech partner to help small retail partners provide operating capital through revenue-based financing. Additionally, embedded lending is being facilitated by Credit Fair to simplify the customer journey, minimize turnaround time, reduce operating costs and hence minimize finance costs for our merchants and consumers. The partnership with Northern Arc will help broaden its product suite and service offerings to address the requirements of the underserved lower/middle-income sector.
Source: Business World