Home Credit India Finance Pvt. Ltd., one of India's fastest growing non-banking finance company, today announced that it has raised over Rs. 6 billion (Rs. 600 crore) through a mix of innovative securitisation transactions, terms loans, and non-convertible debenture (NCD) issue during January - Mar 2018.
The funds will be primarily utilised for supporting the rapid growth of business and expanding operations across India. Of the total amount raised, nearly Rs. 2.8 billion (Rs. 280 crore) has been raised through securitization of consumer durables and cross-sell personal loans. The balance financing of 3.2 billion (Rs. 320 crore) has been raised through multiple term loans and a NCD.
While the securitisation issues were subscribed by investors like DCB Bank and Hinduja Leyland Finance Limited, term loans were raised from a clutch of leading financial institutions such as IFMR Capital, Tata Capital, and JM Financial. The tenor of these transactions ranges from five months to three years.
With this 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.
"For Home Credit, India is a strategically important market. To support the growth of our business in the medium term, we will continue to diversify our funding base in terms of innovative financing instruments and maturity, and to attract flexible and stable funding sources based on long-term, mutually beneficial relationships with investors. The funding will further enable us to make our loans accessible to underserved segments of population, build their credit history, and promote responsible lending," said Anirban Majumder, Chief Financial Officer, Home Credit India.
"Hinduja Leyland is delighted to be associated with Home Credit India and we hope our financing for the consumer durables loan securitisation is the beginning of a long and mutually beneficial business relationship," said Sachin Pillai, CEO, Hinduja Leyland Finance.
In 2017, Home Credit had raised nearly Rs. 870 million (Rs. 87 crore) through two 2-wheeler loan securitisation transactions. In a first ever deal of its kind, the company also raised Rs. 1.53 billion (Rs. 153 crore) through a consumer durables loan securitisation in November last year.
Since its launch in India in 2012, Home Credit India has been consistently expanding operations with a customer base of over six 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 has been successfully rolled out in China, India and South East Asia.
Home Credit Group has 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 percent growth in India, 180 percent growth in Indonesia and a 220 percent increase in the Philippines.
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