Finodaya Capital

Finodaya Capital is a non-banking finance company (NBFC) that’s doing helping people in small towns and cities borrow money for the very first time. It works in India’s financial services industry a $500+ billion market in retail lending alone. But here's the thing: while banks and fintech giants chase urban borrowers with neat credit histories, millions in Tier 2 and Tier 3 cities are still left out. Finodaya focuses on those just entering the formal credit system. It’s a company that meets people where they are — and walks them into the system with a helping hand, not a confusing app or a rejection notice.

Core Products and Services

• Loans for first-time borrowers: These are small, easy-to-manage loans built for people who haven’t taken credit before — like shopkeepers, freelancers, or salaried workers in smaller towns.

• Smart ways to assess credit: Instead of relying on formal credit scores, the company looks at things like payment habits, business cash flow, or even mobile usage to judge who’s trustworthy.

• Simple, digital process: From applying to receiving the money, everything is handled online. It’s fast and doesn’t involve piles of paperwork.

• Local guidance and support: People still want someone they can talk to. Finodaya has team members on the ground who explain how the process works and offer help when needed.

• Helping build a credit record:  Once someone starts repaying on time, that information is shared with credit bureaus which means the borrower can qualify for bigger, better loans in the future.

Business Model and Revenue Streams

• Interest from loans: This is where most of the money comes from — borrowers repay loans with interest, and that keeps the engine running.
• Lean operations:  Since much of the process is handled digitally, Finodaya doesn’t need big teams in every city. That helps keep costs down, even when working in smaller markets.
• Smart lending, lower risk: Instead of relying only on credit scores, they’ve built their own system to evaluate borrowers. That means they can lend more confidently, even to folks new to credit.
• Returning customers: A good number of borrowers come back for another loan. Once there’s trust, people stick around — and that long-term relationship adds steady value.