Fintech NBFCs fuel expansion, tapping into debt markets for growth.

Key points from the article:

Fintech NBFCs are turning to the bond market for funds due to rising costs of bank borrowing.
– In 2023, NBFCs raised ₹2 trillion from the debt market.
– Bank borrowing costs are expected to increase by 15-25 basis points.
Fintech NBFCs borrow from various sources including banks, venture debt funds, and the bond market.
– Firms that do business prudently and have a good credit line can access the bond market for funding.
Fintech NBFCs that have established product-level commercials can borrow through fixed income securities and offer higher returns.
– Fibe, formerly EarlySalary, raised 40% of funding through non-convertible debentures (NCDs).
– Fintech NBFCs looking to tap the debt market next year.
– These companies are accessing the debt market due to increased demand for credit, higher bank borrowing costs, and tighter liquidity conditions.
– Fintech NBFCs have also raised equity over the past 1-2 years, enhancing their ability to leverage.