The Rs 550 Cr investment in the NBFC arm will be led by Kunal Shah's CRED and Newtap

Non-banking financial company Newtap Finance Private Limited is arranging to raise Rs 550 crore (around $64 million) from Newtap Technologies and CRED in the near to medium term.

CRED founder Kunal Shah’s Newtap Technologies is the majority shareholder in Newtap Finance (formerly Parfait).

According to a press discharge by India Ratings and Research, amid FY22-24, promoters have contributed Rs 149 crore in Newtap Fund, with CRED contributing an essential infusion of Rs 35.7 crore to date.

Newtap Finance (NFPL) offers individual advances to people, with CRED serving as the credit benefit supplier. CRED has a monthly active user base of 12 million and gives a extend of services, counting credit card payments, UPI exchanges, vehicle administration, loaning, insurance, personal fund management through account aggregator rails, and rewards/deals.

Newtap Finance’s loan book needs seasoning, but CRED pre-approves credits for select clients based on their budgetary behavior. All CRED individuals qualify with high credit scores, which is a key eligibility criterion for the app.

Kunal Shah indirectly possesses 76% of Newtap Finance through his completely owned entity, Newtap Advances, whereas CRED holds a 23.6% stake. Shah and CRED picked up control of Newtap in 2022, but the RBI blocked CRED's offered to raise its stake in 2023. Since at that point, Newtap has worked to set up itself as an independent NBFC.

At the conclusion of December 2024, the add up to AUM exceptional on Newtap Finance’s platform was Rs 1,141.6 crore, of which Rs 632 crore was on NFPL’s books. NFPL has moreover collaborated with two expansive lenders—a bank and an NBFC—for co-lending and plans to scale up co-lending in the near term.

As of December 2024, CRED had an AUM (assets under management) of Rs 19,000 crore, with an NPA (non-performing asset) of 1.1%, the press discharge added.

During the financial year that finished in March 2024, CRED detailed a 66% year-on-year development in its operating income to Rs 2,473 crore. Additionally, the working losses for the Tiger Global-backed company diminished by 41% in the same period.