Credit Wise Capital to raise Rs 200 crore through share sale
Synopsis Credit Wise Capital (CWC), a two-wheeler financing-focused non-bank lender, is raising Rs 200 crore through its first institutional investment round led by Trident Growth Partners, who invested Rs 120 crore for an 18% stake. The funding will fuel business growth and enhance CWC's tech capabilities. Credit Wise Capital (CWC), a non-bank lender with a focus on two-wheeler financing, is in the process of raising Rs 200 crore by selling shares in its first ever institutional investment.
ADVERTISEMENT Bengaluru-based private equity fund Trident Growth Partners has led this funding round with Rs 120 crore for about 18% stake in 2019-born lending start-up, people aware said. The balance Rs 80 crore is being funded by large family offices and other investors.
With this, CWC has expanded its net worth to Rs 275 crore.
'Trident Growth Partners is the first institutional investor on board, joining us as a long-term strategic partner,' Aalesh Avlani, co-founder of CWC, told ET.The capital will help the company grow business and strengthen its tech stack.This marks Trident Growth Partners' second investment in the non-banking space, managing partner Atul Gupta told ET. The private equity player raised Rs 1000 crore at the first close of its debut fund earlier this year.
ADVERTISEMENT CWC, which started lending in 2021 with Mumbai as the first market, had Rs 646 crore assets under management at the end of March, up 32% from Rs 489 crore a year back.The company's capital adequacy ratio stood at 31.2%, with a gearing of 2.3x and the number of two wheelers financed had crossed over 200,000.
ADVERTISEMENT "The aim is to take it to Rs 4,500 crore by March 2030 with a 50:50 split between two wheeler loans and micro loans against property," Avlani said.The company started offering Rs 5-10 lakh loans against property (LAP) to its existing borrowers only last month.
ADVERTISEMENT "The two-wheeler will be the acquisition strategy. It'll be my high ROA product, and microlap will be my high AUM product," Avlani said.
CWC follows a branchless model but its technology helped it to cater to customers in 215 cities across 10 states at present.
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