True Balance, which provides loans, will use the funds to further expand its operations.
Last month, VentureSoul marked the first close of its debut fund, whose target corpus is INR 600 Cr, to around INR 145 Cr.
The fintech startup is operated by Balancehero India, a wholly-owned subsidiary of Korean company Balancehero Co. Ltd.
Marking the first deployment of its first venture debt fund, VentureSoul Partners has provided INR 20 Cr debt to tech startup True Balance.
The startup will use the funds to further expand its operations, the venture debt firm said in a LinkedIn post.
Last month, VentureSoul marked the first close of its debut fund, whose target corpus is INR 600 Cr, to around INR 145 Cr.
The fund is a Category II alternative investment fund (AIF) registered with SEBI and has garnered commitments from family offices, corporates, high net worth individuals (HNIs) and other investors.
True Balance is operated by Balancehero India, a wholly owned subsidiary of Korea-based Balancehero Co. Ltd. The startup began operations in India in 2017 after obtaining license from the Reserve Bank of India (RBI) to provide wallet services. In 2019, True Balance received approval from the central bank to operate as a non-banking financial company (NBFC).
It offers loans up to INR 1.25 Lakh and utility bill payment services. True Balance targets customers with credit scores of 650 and above and currently manages assets worth INR 1,100 Cr and serves over 9 Lakh active customers.
The fintech startup competes with MobiKwik, Paytm, PhonePe, Navi, among others, in India.
The startup recorded a consolidated net profit of INR 58.8 Cr in the financial year 2022-23 (FY23), up 17 times from INR 3.4 Cr in the previous financial year. Operating revenue jumped 1.8 times to INR 431.1 Cr from INR 243.9 Cr in FY22.
This development comes at a time when debt financing is at an all-time high, exacerbated by the current financing winter and the emergence of new avenues for obtaining capital. The debt route also allows startup founders and other shareholders to fuel growth without diluting their stakes.
According to Inc42 data, debt investments in Indian startups more than doubled to $576 million in the first half of 2024 compared to $285 million during the same period a year ago.
Just a few days ago, an agrotech startup WayCool secured INR 100 Cr debt financing of the Grand Anicut. Before that, edtech startup Vedantu also pocketed INR 19.25 Cr in debt and equity. funding from Stride Ventures.
Last month, IPO-bound adtech startup InMobi also secured $100 million in debt financing from Mars Growth Capital.