Techfino

Techfino Capital Private Limited is a technology-driven non-banking financial company (NBFC) focused on bridging India’s credit gap for underserved segments. The company operates in the fintech-lending sector, specializing in secured and unsecured loans for education, healthcare, and MSMEs (micro, small, and medium enterprises). Techfino’s unique value proposition lies in its hybrid model: a branch-driven physical presence combined with a proprietary fintech platform enabling paperless, swift loan disbursements—particularly in Tier II and III cities where 390 million MSMEs lack formal credit access.

Core Products and Services

• Secured MSME Loans (Loan Against Property - LAP): Collateral-based loans (₹8–12 lakh) for small businesses (kirana shops, dairy farmers, traders) in Tier II/III cities. 

• Unsecured Education Loans: B2B2C model partnering with educational institutions for student financing (coaching, upskilling, higher education).

• Proprietary Technology Platform: Enables end-to-end digital processing, risk assessment, and real-time analytics, reducing turnaround time by 70% versus traditional lenders.

Business Model & Revenue Streams

• Interest Income (95%): Generated from secured and unsecured loan portfolios.

• Fee-Based Services (5%): Processing charges and late-payment fees.

Business Unit Contribution

• Secured MSME Lending: 60% of FY25 revenue (₹20.4 crore out of ₹34 crore), with a target of 80% by FY26.

• Education Loans: 40% of revenue, operating profitably but scaling down due to capital intensity.

Customer Segmentation

• B2B (30%): Partnerships with educational institutes and MSME aggregators.

• B2C (70%): Direct loans to students and small business owners.

Top Clients & Partnerships

• DCB Bank: Early investor (6.2% stake) and strategic partner for co-lending.

• Education Service Providers: Long-term B2B2C alliances for student loan distribution.

• Stellaris Venture Partners & Saison Capital: Series A lead investors providing growth capital and governance support.

• MSME Networks: Collaborations with local trade associations for last-mile borrower acquisition.

• Risk Mitigation: No single sector contributes >20% of revenue. Loans are secured by property (LAP), and the top 10 borrowers represent <15% of AUM.

Future Outlook & Strategic Priorities

• Branch Expansion: Doubling physical presence from 30 to 60 locations by 2026 to deepen MSME penetration.

• Technology Upgrades: AI-driven credit scoring and blockchain integration for enhanced risk assessment.

• Product Innovation: Pilot programs for healthcare equipment financing and invoice discounting.

• AUM Scaling: Targeting ₹350 crore AUM by FY26 (from ₹200 crore in 2025), with secured loans driving 80% of growth.

• Regulatory: Evolving RBI guidelines for NBFCs and digital lending.

• Macroeconomic: Inflation impacting MSME cash flows and collateral valuations.