Finnable, a Bengaluru-based digital lender targeting mid-income professionals, announced it has raised ₹500 crore (roughly $56.4–$57 million) in equity funding led by Z47 and TVS Capital Funds, with participation from MEMG Family Office. The company says it has turned profitable while disbursing paperless personal loans across India—a milestone that has eluded many of its fintech peers.
The funding came in two tranches, according to a report in the Economic Times: ₹250 crore closed late last year, with another ₹250 crore following several months later. For a sector that has weathered regulatory scrutiny and tightening credit conditions, the infusion signals investor appetite for lenders with a demonstrated path to profitability.
Numbers That Tell a Story
Finnable posted a profit after tax of ₹6.74 crore in FY25, a figure that jumped to ₹45.84 crore over the first nine months of FY26, according to CARE Ratings. The company now manages assets under management of ₹3,311 crore—more than triple what it held just a few years ago—with a gross non-performing asset ratio of 1.1%. CARE assigned Finnable a BBB+ credit rating.
Revenue for one recent fiscal period came in at ₹278.49 crore, the Economic Times reported. CARE's rating notes showed the lender's AUM climbing from ₹1,899 crore to ₹2,755 crore year-over-year, then surging past ₹3,300 crore in subsequent quarters. That kind of trajectory, especially while maintaining profitability, is unusual in India's crowded digital lending market.
A 'Phygital' Bet
Finnable offers unsecured personal loans of up to ₹10 lakh with repayment periods stretching to five years. The sweet spot: salaried professionals earning between ₹15,000 and ₹50,000 monthly, a demographic that traditional banks have often underserved. About 65% of its borrowers are taking out their first personal loan, according to Finnable.
More recently, Finnable ventured into loan-against-property products—larger-ticket items up to ₹35 lakh—and had opened 15 branches by August 2025 to support this vertical, according to the Economic Times. The company markets a "phygital" approach, blending digital underwriting with on-the-ground collections. Notably, it keeps all collection staff on payroll rather than outsourcing to third-party agencies, a choice that adds overhead but perhaps grants more control over borrower interactions.
Loan approvals happen within six hours, Finnable claims, with funds hitting accounts in 48 hours or less. The lender works with Axis Bank, Utkarsh Small Finance Bank, Vivriti Capital, TVS Credit and others through co-lending arrangements, some utilizing default loss guarantee frameworks that India's central bank formalized in recent years.
The Founders
Co-founders Nitin Gupta and Amit Arora run the operation. Gupta spent more than two decades in financial services and analytics, including a stretch at a multinational bank and a prior startup he co-founded to serve global lenders, according to CARE Ratings. Arora brings a similar tenure in financial services.
"Finnable was built to solve a real gap," Gupta said in the funding announcement. "Today, we've built a business that earns trust before it earns scale."
It's the kind of line that sounds like startup boilerplate, but the profitability figures lend it weight.
What the Money Buys
The capital will fund product expansion, technology and AI enhancements, branch network growth and entry into new geographies, Finnable said. Gupta told the Economic Times that the bulk of the equity will flow into lending, with portions earmarked for AI development and geographic expansion.
Vikram Vaidyanathan, managing director at Z47—the rebranded Matrix Partners India fund—highlighted the company's tech-enabled model. "Finnable is leveraging technology, 'phy-gital' distribution and the power of AI to bring accessible & responsible credit to millions," he said.
Krishna Ramachandran, managing partner at TVS Capital, called the blend of digital efficiency and physical presence "a uniquely resilient business model."
A Crowded Field
Finnable competes in a digital lending market jammed with players like KreditBee, Fibe, MoneyTap, CASHe, PaySense and Navi. Recent Reserve Bank of India data cited in industry reports suggests fintechs have captured more than half of personal loans under ₹50,000 by value. Yet a separate analysis showed fintech NBFCs accounted for 76% of personal loan sanction volume but only 12% by value in one recent period—a reminder of just how small-ticket and fragmented the segment remains.
Finnable operates as an RBI-registered non-banking financial company (NBFC registration no. N-02.00291). Its lending service provider subsidiary, Finnable Technologies, powers the consumer-facing app. LinkedIn profiles suggest the company employs somewhere between 1,000 and 5,000 people, though exact headcount is difficult to pin down.
Arora has laid out an ambitious target: one million customers and a ₹10,000 crore loan book within four years. Whether the Indian consumer lending market—and regulatory environment—will cooperate remains an open question. But for now, Finnable appears to have the capital, the model and the numbers to make a run at scale.
