Non-banking financial company Newtap Finance Private Limited is set to secure ₹550 crore (approximately $64 million) in funding from CRED and Newtap Technologies in the near to medium term.
Newtap Finance, formerly known as Parfait, is majority-owned by Newtap Technologies, an entity fully controlled by CRED founder Kunal Shah. According to a press release by India Ratings and Research, promoters have invested ₹149 crore in the company between FY22 and FY24, with CRED contributing ₹35.7 crore as a primary infusion.
Newtap Finance primarily offers personal loans, with CRED acting as its loan service provider. CRED, which boasts a monthly active user base of 12 million, facilitates credit card payments, UPI transactions, vehicle management, lending, insurance, and personal finance management.
While Newtap’s loan book remains relatively new, CRED pre-approves loans for select users based on financial behavior, ensuring that only high-credit-score individuals qualify.
Kunal Shah indirectly owns 76% of Newtap Finance via Newtap Technologies, while CRED holds a 23.6% stake. In 2022, Kunal and CRED acquired control of Newtap; however, the Reserve Bank of India (RBI) blocked CRED’s attempt to increase its stake in 2023. Since then, Newtap has been working toward strengthening its position as an independent NBFC.
As of December 2024, Newtap Finance’s assets under management (AUM) stood at ₹1,141.6 crore, with ₹632 crore on its books. The company has partnered with a bank and an NBFC for co-lending and plans to scale up this model further.
Meanwhile, CRED reported a strong financial performance for FY24, achieving 66% year-on-year growth in operating revenue to ₹2,473 crore. The Tiger Global-backed company also reduced its operating losses by 41% during the same period. As of December 2024, CRED’s AUM was ₹19,000 crore, with a non-performing asset (NPA) ratio of just 1.1%.
With its latest fundraising efforts and strategic partnerships, Newtap Finance is poised for expansion. The company is focusing on strengthening its loan portfolio, co-lending collaborations, and independent NBFC operations while leveraging CRED’s extensive user base.
