New Delhi, Fintech unicorn <keyword id="19944449" type="General" weightage="20" keywordseo="incred" source="keywords">InCred</keyword> on Wednesday reported 132 per cent growth in profit before tax to Rs 298 crore in the third quarter of the current fiscal year (FY24), from Rs 129 crore in the corresponding period last year. InCred Finance's core loan book witnessed 55 per cent growth (on-year), crossing Rs 8,000 crore in Q3 FY24. The cost-to-income ratio saw a healthy decline from 56 per cent to 44 per cent. InCred has been valued at $1.04 billion and became the second company to gain the unicorn status last year. "The impressive growth in our profitability is a testament to our 'Risk First' ethos, our best-in-class product delivery, and the commitment of our 1,600+ InCredibles spread across the country," said <keyword id="20317479" type="General" weightage="20" keywordseo="bhupinder-singh" source="keywords">Bhupinder Singh</keyword>, Founder and Group CEO, InCred. InCred's equity investors include KKR, ADIA, TRS, OAKS, INVESTCORP, Moore Capital, Elevar Equity, <keyword id="19960529" type="General" weightage="20" keywordseo="ranjan-pai" source="keywords">Ranjan Pai</keyword> and <keyword id="20317478" type="General" weightage="20" keywordseo="gaurav-dalmia" source="keywords">Gaurav Dalmia</keyword>, etc. Incred had posted Rs 109 crore in profit in FY23 as compared to Rs 31 crore in FY22, a more than 3.5 times growth. Last December, the fintech lender became India's second unicorn of 2023 (the other being quick commerce startup Zepto) after raising $60 million from new and existing investors. <keyword id="20112130" type="General" weightage="20" keywordseo="incred-wealth" source="keywords">InCred Wealth</keyword>, the wealth management subsidiary of InCred, led the funding round with investing $36.76 million, followed by MEMG Family Office at $9 million.

Fintech unicorn InCred reports 132% growth in profit in Q3 FY24

Amid the ongoing startup gloom comes good news in fintech unicorn <keyword id="19944449" type="General" weightage="20" keywordseo="incred" source="keywords">Incred</keyword> which has posted Rs 109 crore in profit in FY23 as compared to Rs 31 crore in FY22, a more than 3.5 times growth. Incred's revenue surged 77.46 per cent to Rs 866 crore during FY23 from Rs 488 crore in FY22, according to its financials with the Registrar of Companies (RoC). The finance cost (interest expenses) was up 62.6 per cent to Rs 356 crore in FY23 from Rs 219 crore in FY22, as the company scaled its operations, according to an Entrackr report. Incred has likely built a loan book of Rs 7,500 crore within the last six years. Late last month, the fintech lender became India's second unicorn of 2023 (the other being quick commerce startup <keyword id="19939134" type="General" weightage="20" keywordseo="zepto" source="keywords">Zepto</keyword>) after raising $60 million from new and existing investors. <keyword id="20112130" type="General" weightage="20" keywordseo="incred-wealth" source="keywords">InCred Wealth</keyword>, the wealth management subsidiary of InCred, led the funding round with investing $36.76 million, followed by MEMG Family Office at $9 million. Ravi <keyword id="20112129" type="General" weightage="20" keywordseo="pillai" source="keywords">Pillai</keyword>, Chairman at RP Group of Companies, and <keyword id="19960548" type="General" weightage="20" keywordseo="ram-nayak" source="keywords">Ram Nayak</keyword>, Co-Head of Deutsche Bank, invested $5.4 million and $1.2 million, respectively. InCred Special Opportunities Fund VCC, Singapore-registered entity of InCred, Varanium Capital Advisors and NABS <keyword id="20112128" type="General" weightage="20" keywordseo="vriddhii" source="keywords">Vriddhii</keyword> also participated in the round. With this funding, InCred is now valued at more than $1.03 billion. The firm last raised $68 million in a debt funding round from public sector banks and public financial institutions. <keyword id="19901323" type="General" weightage="20" keywordseo="zomato" source="keywords">Zomato</keyword> in 2022 entered into a strategic partnership with fintech lender InCred for "hassle-free" credit facilities. SEE ALSO:<a href="https://www.businessinsider.in/business/auto/webstories/mercedes-benz-gls-gets-11-lakh-more-expensive-in-india-after-facelift/slidelist/106637475.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/webstories/mercedes-benz-gls-gets-11-lakh-more-expensive-in-india-after-facelift/slidelist/106637475.cms" target="_blank">Mercedes-Benz GLS gets ₹11 lakh more expensive in India after facelift</a><a href="https://www.businessinsider.in/sports/webstories/indias-t20-squad-for-afghanistan-show-world-cup-trials-are-on/slidelist/106633092.cms" target="_blank"></a> <a href="https://www.businessinsider.in/sports/webstories/indias-t20-squad-for-afghanistan-show-world-cup-trials-are-on/slidelist/106633092.cms" target="_blank">New and veteran names in India’s T20 squad for Afghanistan show World Cup trials are on</a><a href="https://www.businessinsider.in/business/auto/webstories/top-10-electric-cars-sale-in-india-in-december-2023/slidelist/106627784.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/webstories/top-10-electric-cars-sale-in-india-in-december-2023/slidelist/106627784.cms" target="_blank">Tata Motors dominates the EV car market in December with Tiago leading the charge</a>

Fintech unicorn Incred logs Rs 109 cr profit in FY23, revenue up over 77%

<ul><li>The fintech space saw five funding rounds surpassing the $100 million mark.</li><li>The sector saw 31 acquisitions, and two initial public offers in 2023.</li><li>Alternative lending, payments, BankingTech raised the most funds in a tough year. </li></ul>As the funding winter rages on, India’s fintech sector saw fund inflows decline by 63% in 2023. The sector raised a mere $2 billion for the year – lower than $5.4 billion raised in 2022 and $8.4 billion in 2023, says a report by Tracxn. In spite of the fall, India ranked third globally in 2023 in terms of <keyword id="12790780" type="General" weightage="20" keywordseo="fintech-startup-funding" source="Orion">fintech startup funding</keyword>. Globally, funds have become tight for startups due to rising interest rates, as well as tough and uncertain macroeconomic conditions. “Despite a 63% decline, the sector stands strong as the third-highest funded ecosystem globally, affirming its position as a hub of innovation. The implementation of regulatory measures and the government's commitment to digitalization have set the stage for a promising future,” said Neha Singh, co-founder at Tracxn. Only one unicorn this year The year witnessed five funding rounds surpassing the $100 million mark. Perfios, a real-time credit decision platform, raised $229 million in a Series D round led by Kedaara Capital. Mintifi, an online marketplace for business loans, secured $110 million in a Series D funding round led by Premji Invest. The sector also saw only one unicorn – <keyword id="4331504" type="General" weightage="20" keywordseo="incred" source="Orion">InCred</keyword> that was created in the year. But the sector also saw consolidation. There were 31 acquisitions, similar to the previous year. TrillionLoans was acquired by BharatPe for $36 million, Goals101 acquired by M2P for $30 million; and Upwards acquired by LendingKart for $12.1 million. Two companies, Zaggle and Veefin, announced initial public offers in 2023, compared to five companies that went public the year before. Slowdown in funding was seen across stages of deals. While late-stage rounds witnessed a 56% drop, early-stage rounds fell much sharply at 73%. Seed-stage rounds were also not immune to this downward trajectory, seeing a 69% drop. Fintech’s funding worries <table style="border-width: initial; border-style: none;"><colgroup></colgroup><col /><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Stage of funding </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Funds raised in 2023 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Funds raised in 2023 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% change </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Late-stage </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$1.4 billion </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$3.2 billion </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-56% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Early-stage </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$489 million </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$1.8 billion </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-73% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Seed </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$145 million </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$474 million </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-69% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$2 billion </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$5.4 billion </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-63% </td></tr></tbody></table>Source: Tracxn Alternative lending, BankingTech shine Even as funding was scarce, sectors within fintech like alternative lending, payments, and bankingtech saw a good run. Alternative Lending received funding of $835 million in 2023, down from $2.28bn in 2022. The BNPL (buy now pay later) segment saw significant growth due to its adoption within the country, which contributed to the growth of the sector. “The digital lending space, which increasingly relies on customer data for its product marketing and development, is also likely to grow owing to the government’s recently launched Digital Personal Data Protection Act, which will ensure more transparency and customer trust in the sector,” the report added. Banking Tech received funding of $331 million in 2023, which halved compared to last year. But the segment substantially benefited from digitalization, and digital banking has seen widespread adoption due to rising internet and mobile device penetration in cities as well as rural areas. “Additionally, the Indian government has recently allocated about $16.7 billion towards the BharatNet project to increase broadband connectivity within rural areas, which will help widen the reach and potentially attract more investments into the sector,” the report said. Peak XV Partners, Y Combinator, and LetsVenture were the top investors in the space. We Founder Circle, Y Combinator, and 100X.VC led seed investments; while Accel, Omidyar Network India, and Elevation were prominent investors in early-stage investments. OP Finnfund Global Impact Fund was the leading late-stage investor in 2023. SEE ALSO <a href="https://www.businessinsider.in/business/startups/news/late-stage-deals-are-back-but-funding-winter-is-far-from-over-say-vcs/articleshow/105389287.cms">Late-stage deals are back but funding winter is far from over say VCs</a> <a href="https://www.businessinsider.in/business/startups/news/a-billion-little-pieces-unicorns-lose-bragging-rights-as-funding-winter-deepens/articleshow/104356885.cms">A billion little pieces: Unicorns lose bragging rights as funding winter deepens</a>

India’s fintech funding shrinks over 60% to $2 billion

<ul><li>The two businesses will now operate under <keyword id="4328684" type="General" weightage="20" keywordseo="incred-finance" source="Orion">InCred Finance</keyword>’s brand names.</li><li>The duo believes that the merger would create a “leading” NBFC.</li><li>KKR India Financial Services is a subsidiary of Reliance Jio’s investor KKR.</li></ul><keyword id="4331504" type="General" weightage="20" keywordseo="incred" source="Orion">InCred</keyword> Financial Services and KKR India Financial Services (KIFS), on Tuesday, announced that they have completed the merger of their lending businesses. A deal to merge the non-bank lending business of these two entities was announced in August last year. The two businesses have been engaged in extended talks for over a year before sealing the deal. The merged business will now operate under the name of InCred Finance, with a balance sheet of $600 million and an equity base of $300 million. “The strategic partnership with KKR significantly accelerates our ability to deliver our class leading offerings at a large scale and to capitalize on the enormous credit opportunity in India,” said Bhupinder Singh, founder and CEO of InCred Group. Singh, who founded InCred in 2016 to provide tech-enabled loans to MSMEs, consumers and even education loans – will also lead the new merged entity. The duo believe that the merger would create a leading Indian non-banking finance company (NBFC). “This merger combines the strengths of InCred Finance and KIFS to create a market-leading lending platform with the enhanced resources and expertise to meet the diverse funding needs of Indian customers. KKR is pleased to remain involved with the business as a strategic partner,” Gaurav Trehan, partner and CEO of KKR India, added. KKR India Financial Services is a subsidiary of global investment firm KKR, which is an investor in Reliance’s Jio Platforms, Reliance Retail, Max Healthcare, LivSpace, JB Chemicals &amp; Pharmaceuticals and more. The lending subsidiary is focused on wholesale or corporate loans. InCred Finance was founded by Singh in 2016. It offers loans to customers, businesses and students through both online and offline mediums. The company claims that its loan book is already touching $500 million in a span of seven years. InCred has raised close to $300 million to date. It counts INVESTCORP, OAKS, Moore Capital, Elevar Equity, Paragon Partners, Cantor Fitzgerald’s Anshu Jain, Manipal Education and Medical Group’s Ranjan Pai, and Dalmia Group Holdings’ Gaurav Dalmia as investors. SEE ALSO <a class="tout-title-link" href="https://www.businessinsider.in/finance/banks/news/rbi-governors-recipe-for-banks-of-the-future-oodles-of-social-media-new-tech-a-dash-of-human-touch/articleshow/93138812.cms">RBI governor’s recipe for banks of the future: Oodles of social media, new tech &amp; a dash of human touch</a> <a href="https://www.businessinsider.in/business/ecommerce/news/e-commerce-platform-shopify-lays-off-1000-employees/articleshow/93151446.cms">E-commerce platform Shopify lays off 1,000 employees</a> <a href="https://www.businessinsider.in/business/news/indias-newly-digitized-msmes-need-offline-marketing-as-much-as-online/articleshow/93138395.cms">India’s newly digitized MSMEs need offline marketing as much as online</a>

InCred, KKR India Financial Services complete merger, hope to become a ‘leading’ NBFC

<ul><li>Financial services firm <keyword id="8331532" type="General" weightage="50" keywordseo="incred-capital" source="Orion">InCred Capital</keyword> announced the acquisition of <keyword id="6571307" type="General" weightage="80" keywordseo="orowealth" source="Orion">Orowealth</keyword>, an alternate asset advisory firm.</li><li>With this acquisition, <keyword id="4331504" type="General" weightage="100" keywordseo="incred" source="Orion">InCred</keyword> will enter the wealth-tech segment with the launch of <keyword id="15944055" type="General" weightage="50" keywordseo="incred-money" source="Orion">InCred Money</keyword>.</li><li>The <keyword id="9750911" type="General" weightage="50" keywordseo="incred-group" source="Orion">InCred Group</keyword> has over ₹15,000 crore assets under management (AUM), and its businesses include an NBFC and an institutional wealth and asset management platform.</li></ul>Financial services firm InCred Capital announced the acquisition of Orowealth, an alternate asset advisory firm, on Monday, in an all-cash deal. The deal value has not been revealed. With this acquisition, InCred will enter the wealth-tech segment with the launch of InCred Money. It will be led by Orowealth’s co-founder <keyword id="14427300" type="General" weightage="50" keywordseo="vijay-kuppa" source="Orion">Vijay Kuppa</keyword>. InCred has two other businesses – InCred Finance, a new-age non-banking finance corporation (NBFC) focused on lending, and InCred Capital, an institutional, wealth and asset management platform. “In the next decade, the democratization of investment opportunities covering the mass affluent and retail segments will be driven by digital platforms that unlock access to non-traditional assets for investors as well as their advisors,” said <keyword id="117981" type="General" weightage="50" keywordseo="bhupinder-singh" source="Orion">Bhupinder Singh</keyword>, founder and group CEO of InCred Group. The acquisition of Orowealth adds over ₹1,100 crore to the assets under management (AUM) of the InCred Group – which itself has an AUM of ₹15,000 crore (before the acquisition). The company also said it has a team of over 100 private bankers and caters to the high networth and ultra-high networth segments. Orowealth’s acquisition now allows it to cater to the retail and mass-affluent space. “With the launch of the InCred Money platform, we are committed to offering best-in-class products to these rapidly evolving customer segments in keeping with our vision to meet the financial needs of every Indian family,” Singh added. InCred Money will be targeted at customers, and also serve as a platform for other businesses which want to serve customers. As far as the platform services are concerned, InCred Money plans to integrate a network of Independent Financial Advisors (IFA) across the country. “There is a growing demand for non-traditional investment assets from mass affluent and retail investors due to rising income levels and greater awareness. We are addressing this massive demand by putting together a suite of carefully curated products and solutions,” said Vijay Kuppa, co-founder, Orowealth and now the CEO of InCred Money. Orowealth offered users options to invest in bonds, mutual funds, peer-to-peer loans, invoice discounting, fractional real estate and more. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/december-auto-sales-could-skid-sequentially-on-production-constraints-purchase-deferrals-due-to-inauspicious-period/articleshow/96617021.cms">December auto sales could skid sequentially on production constraints, purchase deferrals due to ‘inauspicious’ period</a> <a href="https://www.businessinsider.in/business/news/gautam-adani-man-of-the-year/articleshow/96610248.cms">Gautam Adani: Man of the year</a> <a href="https://www.businessinsider.in/thelife/personalities/news/top-five-billionaires-in-2022-elon-musk-gautam-adani-and-bill-gates/articleshow/96509847.cms">After a round of musical chairs, Musk, Gates and Adani are among 2022’s top 5 billionaires</a>

InCred Capital acquires alternate asset advisory firm Orowealth

<ul><li>The effects of the RBI crackdown on easy <keyword id="35520" type="General" weightage="20" keywordseo="personal-loans" source="Orion">personal loans</keyword> is yet to be seen. </li><li>Despite a more than 25% decrease in acceptance rates, credit card balances have consistently increased. </li><li><keyword id="185013" type="General" weightage="20" keywordseo="gold-loans" source="Orion">Gold loans</keyword> stand out within the <keyword id="817163" type="General" weightage="20" keywordseo="retail-lending" source="Orion">retail lending</keyword> segment by providing the most favourable acceptance rates. </li></ul>Personal loans are on the rise. The month of December has seen the category in lending-verse amass outstanding balances of approximately ₹11 lakh crore, as per the Consumer Finance Overview by InCred Finance. Within the segment, the most rapid growth has been seen in small ticket personal loans (STPL), defined as loans under ₹25,000, witnessing a fourfold increase in volume over the past two years. Meanwhile, conventional personal loans, characterised by larger amounts and stricter underwriting criteria, have doubled in volume over the same period. It is to be noteworthy that in November, earlier this year, RBI increased the <a href="https://www.businessinsider.in/finance/news/rbi-tightens-norms-on-personal-loans-for-banks-nbfcs/articleshow/105269235.cms">risk weightage</a> for unsecured personal loans, and the effect is expected to be seen gradually. Retail lending trumps corporate lending Interestingly, retail lending, directed at individuals rather than businesses, now holds the foremost position and exhibits the most rapid growth within the credit landscape. Retail lending stands at approximately ₹89 lakh crores (around $1.1 trillion), constituting 46% of the overall credit in the economy. The report says that comparatively, corporate lending amounts to ₹74 lakh crores (about $0.9 trillion), securing the second largest segment. Retail balances are growing at a rate of 22% annually from a substantial base, outpacing the 17% growth of overall credit balances and the 14% growth of corporate balances. <keyword id="6387037" type="General" weightage="20" keywordseo="credit-cards" source="Orion">Credit cards</keyword> remain fastest growing retail lending category, despite decreased acceptance rates The fastest growing sector in retail lending remains credit cards. Despite a more than 25% decrease in acceptance rates and an industry-wide tightening of credit policies for new-to-credit customers, credit card balances have consistently increased. This appears to be a preemptive risk management step by lenders, as overall credit performance in the industry remains stable or even shows signs of improvement. A report by Worldline, a payment and transaction services company, highlighted a <a href="https://www.businessinsider.in/finance/news/indias-debit-card-transactions-fall-but-credit-card-spends-rise-further/articleshow/103960976.cms">surge in credit card transactions</a> in H1 2023, reaching 1.550 billion, signifying a significant increase of 19.6% compared to H1 2022. Loans for personal consumption drive retail lending The outstanding balances for consumer finance have crossed ₹22 lakh crores (approx. USD 270 billion). Despite this high base, balances continue to grow at over 25% per annum across most product categories. <table style="border-width: initial; border-style: none;"><colgroup></colgroup><col /><col /><tbody><tr><td colspan="2" style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Annual outstanding balance growth rate (%) </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Gold loans </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">25 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Car loans </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">26 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Personal loans </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">29 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Two-wheeler loans </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">31 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Consumer loans </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">33 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Credit cards </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">34 </td></tr></tbody></table> Source: InCred <keyword id="1897540" type="General" weightage="20" keywordseo="consumer-durable-loans" source="Orion">Consumer durable loans</keyword> see rapid growth Consumer durable loans, akin to STPL loans in terms of loan amounts, are experiencing rapid growth. However, the distinction lies in their controlled use case, where disbursements are directly made to the merchant. The risk performance of these loans earmarked for consumer durables has shown stability. Gold loans continue to shine Gold loans also stand out within the retail lending segment by providing the most favourable acceptance rates, which is natural since it is a secured loan. Banks have observed a rapid increase in their unsecured loan portfolios, raising concerns by the Reserve Bank of India (RBI). Responding to the RBI's worries about the growth of unsecured loans, specific banks are swiftly shifting their attention toward encouraging secured lending. Among these, gold loans have emerged as an attractive financial product within the retail sector. This shift aims to mitigate risk by promoting lending backed by collateral rather than unsecured lending, aligning with the RBI's cautionary stance.

Retail trumps corporate lending as small-ticket loans see fourfold jump in past two years

New Delhi, Online food delivery platform <keyword id="6358977" type="General" weightage="20" keywordseo="Swiggy" source="Orion">Swiggy</keyword> on Tuesday said it has facilitated over Rs 450 crore in loan disbursal to more than 8,000 restaurant owners as part of its capital assist programme. Launched in 2017, the capital assist programme is a first-in-the-segment solution designed to bridge the financing gap and empower restaurant owners. Over 8,000 restaurants have availed loans so far, of which 3,000 availed loans in 2022 alone, the company said in a statement. Partnering with multiple lending partners, including Indifi, Incred, FT Cash, PayU Finance, and IIFL, Swiggy offers tailored financial solutions like term loans and credit lines. "The NBFCs will soon facilitate more exciting solutions like pre-approved loans to enable our partners to gain easier and quicker access to capital, driving even more growth for their businesses," said Swapnil Bajpai, VP-Supply, Swiggy. From quick sign-ups to even quicker approvals, through capital assist programme, the NBFCs take a fast, easy, and efficient approach to provide funds for restaurant partner's business needs. "We have done three rounds of financing so far and have used these funds for our working capital requirements. The entire process from the application to receiving funds is incredibly quick, efficient, and transparent," said Aarti and Sumit Rastogi, owners of ARTINCI -- Indulge Guilt Free! in Bengaluru.

Swiggy disburses over Rs 450 cr in loans to 8000 restaurant owners

<ul><li>The Series B round was led by JuvoVentures, <keyword id="122716" type="CITY" weightage="20" keywordseo="Sequoia-Capital">Sequoia Capital</keyword> and Unitus Ventures, among others.</li><li>The <keyword id="2461546" type="PERSON" weightage="20" keywordseo="FinTech">fintech</keyword> startup is also looking to hire across distribution, institute partnerships, technology and operations verticals. </li><li><keyword id="7518492" type="UNKNOWN" weightage="20" keywordseo="eduvanz">Eduvanz</keyword> claims to have disbursed loans worth more than ₹500 crore to over 30,000 learners.</li></ul><keyword id="6360098" type="UNKNOWN" weightage="20" keywordseo="Education-loan">Education loan</keyword> provider Eduvanz has raised ₹100 crore to expand its offering and launch new products in the coming quarters. The Series B round was led by JuvoVentures, Sequoia Capital and Unitus Ventures, among others. The company will also use this funding to develop a stronger information technology (IT) infrastructure as well as enhance its artificial intelligence (AI) and machine learning (ML) capabilities for risk assessments before giving out an education <keyword id="6360217" type="UNKNOWN" weightage="20" keywordseo="loan">loan</keyword>. The fintech startup is also looking to hire across distribution, institute partnerships, technology and operations verticals. Founded in 2016 by Varun Chopra and Raheel Shah, Eduvanz claims to have disbursed loans worth more than ₹500 crore to over 30,000 learners. The company now aims to disburse another ₹1,000 crore in loan across all the lending products in financial year 2022. Eduvanz had also raised $10 million in debt funding in February 2021 from multiple financial institutions including InCred Financial Services, Vivriti Capital and Northern Arc Capital. For any lending business, debt funding is used to disburse loans as there is no equity involved. “India is going to be the fastest major economy in this fiscal and with COVID-19 cases easing out, several Indians are looking to reskill and enroll into new courses. The funds we have raised provide us the right launchpad for our next level of growth in India in the education lending sector,” Chopra, chief executive of Eduvanz, said. The five-year-old startup works with students and institutions to enable equated monthly instalments (EMI)-based loans under a ‘study now-pay later’ model. The company focuses on students from kindergarten to grade 12, higher education and upskilling courses. It competes with <keyword id="8862993" type="UNKNOWN" weightage="20" keywordseo="Leap-Finance">Leap Finance</keyword>, which is a <keyword id="6618634" type="UNKNOWN" weightage="20" keywordseo="lending-startup">lending startup</keyword> that focuses on education abroad. SEE ALSO <a href="https://www.businessinsider.in/business/startups/news/urban-company-on-lookout-for-15000-service-professionals-in-50-cities-in-india/articleshow/85447261.cms">Urban Company is on the lookout for 15,000 service professionals as it wishes to tap into 50 cities by the end of this year</a> <a href="https://www.businessinsider.in/business/startups/news/postman-is-now-the-highest-valued-vc-funded-saas-startup-in-india-after-a-225-million-fundraise/articleshow/85429769.cms">Postman is now the highest valued VC funded-SaaS startup in India, after a $225 million fundraise</a> <a href="https://www.businessinsider.in/retail/news/a-third-of-internet-users-would-be-actively-shopping-online-by-the-end-of-this-decade-offline-retail-to-take-a-back-seat/articleshow/85390712.cms">A third of internet users would be actively shopping online by the end of this decade, offline retail to take a back seat</a>

Student loan provider Eduvanz raises ₹100 crore from JuvoVentures, Sequoia and others

<ul><li><keyword id="29542" type="General" weightage="20" keywordseo="leap" source="Orion">Leap</keyword> is the parent company of <keyword id="12053391" type="General" weightage="20" keywordseo="leapfinance" source="Orion">LeapFinance</keyword> that offers collateral-free <keyword id="49952" type="General" weightage="20" keywordseo="education-loans" source="Orion">education loans</keyword>.</li><li>The company also helps the students find the right colleges and financial help.</li><li>It has raised over $75 million to date from Sequoia Capital, Owl Ventures, Kunal Shah and others.</li></ul>Leap, a startup that helps students finance their overseas education, has raised $55 million (₹400 crore) in order to issue international student credit cards and insurance products. The company also plans to expand its services to students across Southeast Asia, Middle East and North Africa (MENA) regions. Leap is the parent company of LeapFinance that offers collateral-free education loans and <keyword id="12053392" type="General" weightage="20" keywordseo="leapscholar" source="Orion">LeapScholar</keyword>, which guides students to find the right colleges and financial help. The Series C round was led by Owl Ventures, with participation from existing investors Jungle Ventures and Sequoia Capital India. Harvard Management Company, a wholly owned subsidiary of <keyword id="97117" type="General" weightage="20" keywordseo="HArvard-university" source="Orion">Harvard University</keyword>, also infused an undisclosed amount in the Bengaluru-based startup. The three-year-old startup — founded by Arnav Kumar and Vaibhav Singh — has raised over $75 million in equity capital to date. It is backed by marquee investors like Cred’s Kunal Shah, Incred’s Bhupinder Singh, Sequoia Capital’s Ashish Agarwal, Balaji Srinivasan of Uni and more. “In the last 12 months, we have identified and filled key gaps in the international students’ journey -- offering accurate information, guidance, financing and career support,” Arnav Kumar, co-founder of Leap said in a statement. Leap claims to have helped over 60,000 students with overseas education in 2020 and aims to serve over 1.5 lakh customers in 2021 as well. As per its website, Leap has partnered with over 231 universities that support 2,300 courses. The company claims to have funded $175 million worth of student loans to date. SEE ALSO <a href="https://www.businessinsider.in/business/startups/news/zomato-policybazaar-investor-info-edge-invested-in-nearly-2-startups-every-month-in-2021/articleshow/86028438.cms">Zomato, PolicyBazaar investor Info Edge invested in nearly 2 startups every month in 2021</a> <a href="https://www.businessinsider.in/business/startups/news/byjus-bags-another-150-million-to-fund-its-acquisition-spree/articleshow/86027937.cms">Byju’s bags another $150 million to fund its acquisition spree</a> <a href="https://www.businessinsider.in/business/startups/news/zoho-corp-invests-5-million-in-medical-devices-startup-voxelgrids/articleshow/86000656.cms">Zoho Corp invests $5 million in medical devices startup Voxelgrids</a>

Harvard Management Company backs Leap that helps students finance their overseas education

<ul><li><keyword id="2023017" type="General" weightage="20" keywordseo="unicorns" source="Orion">Unicorns</keyword> that were once celebrated are now bearing the burden of their past valuations.</li><li>Chasing rapid growth, cash burn, low governance standards and troubled public debuts have become their undoing.</li><li>Few are hitting the $1 billion valuation status and even those who are achieving them are wary of declaring it, experts say. </li></ul>A unicorn, by its very definition, is a rare creature only to be found in myths and fairytales. Not surprising then that the startup ecosystem decided to use the name of this mythical creature to describe companies that attained the exalted valuation of $1 billion or more. Two years after India became the third largest home for unicorns in the world, these entities are yet again becoming rare. Several have seen down rounds and have lost their <keyword id="6846108" type="General" weightage="20" keywordseo="unicorn-status" source="Orion">unicorn status</keyword>, while a few others are wary of even acknowledging their unicorn status. Suddenly, the word is no longer a feat or a milestone that founders or investors want to celebrate. India minted 58 unicorns in 2021 and the total tally went up to 100 in May 2022. Business Insider caught up with experts from the startup ecosystem to understand why ‘unicorn’ is no longer a coveted title. Amarjeet Makhija, partner and leader of startups &amp; unicorns, PwC India, says that hitting the unicorn status called for a lot of celebration and that attracted a lot of attention. “They (startups) also attracted regulator attention after flying under the radar for a long time. The result is taxes in the gaming sector as the unicorn status led people to believe that these companies have deep pockets. I would think even those who are raising money and attaining the status are being cautious about it and not declaring it,” he explains. Here’s some context, India is now the third largest startup ecosystem in the world with nearly 100,000 startups and at last count India had 110 unicorns that collectively had raised $100 billion with a combined valuation of over $350 billion. India’s first unicorn was born in 2011 and the maximum number of unicorns were created between 2020 and 2022. Just to understand the pace of value creation, let’s look at Infosys, which took 18 years to become a billion dollar corporation. Easy money that was sloshing around in the system did not do any favours to the startup ecosystem as investors funded mere ideas that did not have long legs. India is now home to the third largest number of unicorns in the world, but nobody thinks it is a cause of any celebration because it means nothing. <div type="image" title="unicorns in india" msid="104356992" hostid="261" sizebytes="636638" caption="&amp;lt;p&amp;gt;Source: Company&amp;lt;/p&amp;gt;"></div> Who is to blame for the unicorn bubble? Blame it on the greed of founders or willing suspension of disbelief on the part of venture funds that backed companies which had neither a sound business model nor path to profitability, but the truth is that the valuation bubble has burst. Anas Rahman Junaid, founder and chief researcher at Hurun India, says that some of the blame lies with the investors that pushed for unrealistic growth metrics. “It is very hard to be a unicorn today and investors are no longer buying into grand visions on growth,” he adds. The problem is not so much with the word unicorn but the issue is with cash-guzzling loss-making unicorns. Abhishek Agarwal, managing partner at Rockstud Capital, argues that the market's sentiment is negatively impacted due to loss-making unicorns. Founders are, therefore, avoiding the press since their profit and loss statements are negative. He says: “This is a temporary phase when exuberance around unicorns is not as it was earlier. We are in the middle of a funding winter. The playbook during the pandemic was to chase at any cost ignoring fundamentals. Since then there has been a shift in investors and founders are now factoring that in." Hurun’s Junaid adds that startups that do not have a clear path to profitability, it would be difficult to get a good pricing. “I wouldn’t just blame the startups for the grand vision. After all it’s some of the VCs and investors who pushed for unrealistic growth metrics. This unrealistic expectation to grow rapidly is not sustainable and could eventually burst. The flipside is some of these startups also start painting a picture of building castles in the air. Eventually, all this snowballed and became bigger until it burst,” he says. <div type="image" title="unicorns india" msid="104356922" hostid="261" sizebytes="639628" caption="&amp;lt;p&amp;gt;Source: Company&amp;lt;/p&amp;gt;"></div> Unicorn’s fall from grace – from aspiration to becoming a bad word From being an aspiration, the word unicorn stands for excesses of the pandemic era, when talk mattered more than substance. And few of them made good use of the money that came too easy. One venture capital investor cites a troubling example of a startup that was looking to raise funding without any business model or proposition but had a full customer care team in place. The investor says, “Which good company with good governance standards would have a customer and sales team without the product?” From being an aspirational goal, the word unicorn is now being seen as a dubious distinction by many. There have been many fallen heroes. Byju’s was once a celebrated decacorn. But now it’s in all sorts of trouble after funding dried up — like legal troubles of its inability to repay a term loan, high-profile exits from the board, jobs cuts and valuation cuts. Extensive delays in declaring its financial earnings too added to people who view it with askance. What has made matters harder for founders is the performance of some of these new age companies in the last three years in the public markets after they got listed on stock exchanges. <keyword id="6376684" type="General" weightage="20" keywordseo="nykaa" source="Orion">Nykaa</keyword>’s stock price had already fallen by 80% before it issued bonus shares in November last year. <keyword id="11111226" type="General" weightage="20" keywordseo="pb-fintech" source="Orion">PB Fintech</keyword>’s stock also lost a quarter of its value since it was listed, even after a recent run-up in the stock. A few other listed companies like <keyword id="830092" type="General" weightage="20" keywordseo="zomato" source="Orion">Zomato</keyword> also angered investors and regulators alike for directing IPO proceeds towards acquisitions, without an indication of it in the DRHP. In the last three years, there have been many public listings of startups that later became the litmus test for founders. “Going from private to public is the ultimate test for many celebrated startups. While there were many expectations, they turned into a poisoned chalice. It taught many lessons on pricing these companies, with sustainable profits and not just growth,” says Junaid. Vivek Singla, Managing Partner and CIO - Private Equity at Incred Alternative Investments, does not think that the word unicorn has become an anathema in the startup world but he feels that it is nothing but a derivative and not a goal in itself. He explains: “The two years of the pandemic were heady for the startup ecosystem with two unicorns being minted almost every week. Everyone knew that the party would end at some point but nobody knew when, as everyone was only chasing valuations. The subsequent rounds that unicorns raised were at even higher valuations. Thereafter, we have seen the downrounds that have happened and many unicorns may not go back to their peak valuations in the foreseeable future.” According to a report by Redseer, 20% of India’s unicorns may see a bleak future <a href="https://www.businessinsider.in/business/startups/news/unicorn-report-30-will-be-ipo-ready-next-year-but-future-bleak-for-20/articleshow/102394774.cms">in the next three years</a> but half of them might turn profitable. Several unicorns have lost their status after downrounds that happened in 2022 and 2023. The reason for this is because the era of easy money is long gone and Explains Makhija of PwC, “Even if a startup attains unicorn status, if a down round takes place in six months, are you even a unicorn? Earlier large players were writing big cheques where there was no need to raise funds for another 12-18 months. Now, they are not being written, which means they need money sooner.” <div type="image" title="unicorns" msid="104356973" hostid="261" sizebytes="712256" caption="&amp;lt;p&amp;gt;Source: Company&amp;lt;/p&amp;gt;"></div> The real value is in ‘profits’ There was a time when every week saw the birth of at least two unicorns. This year has been fairly quiet with only Zepto announcing that it became the first unicorn of the calendar year after it raised $200 million in its latest round. While most unicorn founders have gone underground, the bulge bracket venture and private equity investors too have gone silent on valuations. Instead the attention is now on profitability and break-even. While most unicorns that are looking to tap public markets say that they are profitable both at the net and operating level, their profit pool will remain rather small in the foreseeable future as they will continue to be in the growth phase. Incred’s Singla is of the view that now every other month there will be announcements on startups turning profitable. “The earlier mantra was ‘growth at any cost’, which has now changed to ‘profit after all the costs’. Founders have realized that investors are no longer chasing just growth, rather profitable growth and they have recalibrated their priorities accordingly,” he says. Startups have always been operating in manner that were poles apart from family-run businesses or regular small and mid cap companies who veer towards cash conservation and value addition. Initially, startups that were led by young founders’ disruptive nature were cheered. Now that the dust has settled, investors refuse to see a mirage where there might be a storm coming. That’s how unicorns were left with little but their status — which now means little.

A billion little pieces: Unicorns lose bragging rights as funding winter deepens

<ul><li><keyword id="6354646" type="General" weightage="20" keywordseo="nse" source="Orion">NSE</keyword> cautioned investors from investing in some guaranteed returns schemes offered by two individuals -- Shubhrakanti Nag and Suprakash Debnath.</li><li>They are operating proprietary bank accounts in the name of Profit Axis PMS Services, Stox Gurukul, Tradenext securities to collect funds from the public through assured/guaranteed return schemes.</li><li>After the <keyword id="8391725" type="General" weightage="20" keywordseo="karvy-scam" source="Orion">Karvy scam</keyword> in 2019, stock exchanges NSE and BSE have been proactive in identifying such scam entities.</li><li>This April, SEBI penalised BSE and NSE for ‘laxity’ in detecting the scam at <keyword id="66049" type="General" weightage="20" keywordseo="Karvy-Stock-Broking" source="Orion">Karvy Stock Broking</keyword>.</li></ul>NSE cautioned investors against investing in guaranteed returns schemes offered by two individuals -- Shubhrakanti Nag and Suprakash Debnath, in a statement on Wednesday. After the Karvy scam in 2019, stock exchanges NSE and BSE have been proactive in identifying scam entities. In the statement, NSE informed investors that these individuals are operating various proprietary bank accounts in the name of Profit Axis PMS Services, Stox Gurukul, Tradenext securities etc for collecting funds from the public through assured/guaranteed return schemes. “Investors are cautioned and advised not to subscribe to any scheme/ product offered by these or any entities/ individuals offering indicative/assured/guaranteed returns in the stock market as the same is prohibited by law. Participation in such prohibited schemes is at investors’ own risk, cost and consequences as such schemes are neither approved nor endorsed by the exchange,” said the stock exchange. Moreover, these entities are not registered either as a member or as an authorised person of any registered member of the exchange. However, they are found to be associated with a registered trading member Tradenext Securities and its directors are Shubhrakanti Nag and Suchana Das Nag. For any kind of disputes relating to such prohibited schemes, mechanisms such as benefits of investor protection under exchange's jurisdiction, exchange dispute resolution mechanism and investor grievance redressal mechanism administered by exchange, would not be available to investors. This April, SEBI penalised both the exchanges with penalties worth ₹3 crore and ₹2 crore respectively, for laxity in detecting Karvy Stock Broking scam. In 2019, SEBI found out that the Hyderabad-based broking firm had misutilised client securities by availing large amounts of loans by pledging client securities worth around ₹2,300 crore that belonged to over 95,000 clients. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/buy-on-dips-say-analysts-as-indian-markets-bounce-back-smartly-in-october/articleshow/95454116.cms">Buy on dips, say analysts, as Indian markets bounce back smartly in October</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/whenever-small-caps-trade-at-a-discount-to-nifty-they-have-given-outsized-returns-incred-wealth/articleshow/95536784.cms">Whenever small caps trade at a discount to Nifty, they have given outsized returns: InCred Wealth</a>

Beware of these guaranteed returns schemes, NSE warns investors

Rich nations are making a push to include language such as "major emitters and "top emitters" in the cover text of the ongoing <keyword id="58361" type="General" weightage="20" keywordseo="UN-climate-summit" source="Orion">UN climate summit</keyword> in Egypt which is not acceptable to India, a member of the Indian delegation said. Developed countries want that all top emitters, particularly the top 20 including India and China, make intense emission cuts (to limit warming to 1.5 degree Celsius) and not just the rich nations which are historically responsible for <keyword id="6361617" type="General" weightage="20" keywordseo="climate-change" source="Orion">climate change</keyword>, the member told PTI on condition of anonymity. The cover text is being debated and reworked as ministers and negotiators from all parties try to reach an agreement by the summit's scheduled close on Friday. Providing details of the discussions in a blog post, Union Environment Minister Bhupender Yadav said the progress on key issues at the ongoing UN climate summit has not been good due to the "divergence of views on some fundamental approaches to climate issues". Key issues that remain unresolved include mitigation work programme, second periodic review, global goal on adaptation, and loss and damage, the minister said. He said there is a "distinct attempt to forget or overlook" the principles of equity and Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC). Attempts are being made to "emphasise that the Paris Agreement does not need to adhere to principles of the convention. I stated India's position that this should not be allowed. Historical contribution and responsibilities of developed nations cannot be overlooked", he said. Equity essentially means that each country's share of carbon dioxide emissions is equal to its share of the global population. The CBDR-RC principle recognises that each country is responsible for addressing climate change but developed countries should bear primary responsibilities as they account for most of the historical and current greenhouse gas (GHG) emissions. The environment minister said India cannot support creation of new categories, "such as major emitters, top emitters etc". and assignment of enhanced responsibilities based on such categories that have no basis in the convention and the Paris Agreement. Reflection of gaps in the pre-2020 ambition in the cover decision is paramount as this has led to the unjust transfer of mitigation burden to developing countries in the post-2020 period, he said. "Pursuing efforts to keep global temperature increase to 1.5 degrees will require significantly scaled up and accelerated mobilisation of climate finance from developed countries that have used up a disproportionate share of the global carbon budget," Yadav added. During the first week of the climate talks too, India, supported by other developing countries, had blocked an attempt by rich nations to focus on all top 20 emitters of carbon dioxide during discussions on the 'Mitigation Work Programme'. He said no specific resources or sectors or gases can be singled out for action and added the European Union has supported India on this aspect. India had proposed on Saturday that the talks wrap up with a decision to "phase down" all fossil fuels and not just coal. EU Vice President Frans Timmermans told the media on Tuesday that the bloc would support India's proposal of phase down of all fossil fuels "if it comes on top of what we already agreed in Glasgow". He added that "it should not divert attention to our efforts to phase down coal as we had agreed last year". Yadav said a strong language regarding technology transfer and support is needed in the cover text. "Green premiums for several new technologies remain high and we need the cover decision to recognise the means of implementation support gaps covering technology as well as finance," the environment minister said. Failure in means of implementation (finance, technology, capacity building) support to developing countries is a systemic failure under the Paris Agreement that continues to be a barrier to the implementation and further ambition, he said. Yadav said the cover decision must reflect adaptation and loss and damage elements strongly, such as the need to at least double adaptation finance by 2025, and providing funding for national adaptation plans, and loss and damage. Climate finance for adaptation, mitigation and addressing loss and damage is a key issue at the climate summit this year. Rich countries have repeatedly failed to mobilise USD 100 billion every year, a promise they made in 2009, to help developing countries cope with climate change. Developing countries, including India, are also pushing developed countries to agree to a new global climate finance target -- also known as the <keyword id="15540926" type="General" weightage="20" keywordseo="new-collective-quantified-goal-on-climate-finance" source="Orion">new collective quantified goal on climate finance</keyword> (NCQG) -- which they say should be in trillions as the costs of addressing and adapting to climate change have grown. India has also sought clarity on the definition of climate finance -- the absence of which, experts say, allows developed countries to greenwash their finances and pass off loans as climate-related aid. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/fpis-pour-28888-crore-into-equities-in-the-first-fortnight-of-november/articleshow/95560705.cms">FPIs pour ₹28,888 crore into equities in the first fortnight of November</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/whenever-small-caps-trade-at-a-discount-to-nifty-they-have-given-outsized-returns-incred-wealth/articleshow/95536784.cms">Whenever small caps trade at a discount to Nifty, they have given outsized returns: InCred Wealth</a>

Attempts being made to forget rich nations' historical contribution: India at COP27

<ul class="p-rich_text_list p-rich_text_list__bullet"><li>Most <keyword id="260273" type="General" weightage="20" keywordseo="srei-group" source="Orion">Srei Group</keyword>’s lenders have either already recognised it as a non-performing account, or are planning to do so over the next three months.</li><li>Some of the biggest lenders to the group that is known for funding infrastructure projects include <keyword id="49007" type="General" weightage="20" keywordseo="uco-bank" source="Orion">UCO Bank</keyword>, <keyword id="6357132" type="General" weightage="20" keywordseo="canara-bank" source="Orion">Canara Bank</keyword>, Bank of India and <keyword id="6355975" type="General" weightage="20" keywordseo="axis-bank" source="Orion">Axis Bank</keyword>, among other public sector and private banks.</li><li>Srei told Business Insider that the amount due to its lenders is ₹28,000 crore (about $4 billion).</li></ul>Kolkata-based Srei Group that runs non-bank lender <keyword id="3187701" type="General" weightage="20" keywordseo="srei-equipment-finance-ltd" source="Orion">Srei Equipment Finance Ltd</keyword>., among other entities, has run into more trouble as its lenders have either already classified or are planning to recognise its borrowings as non-performing. Some of the biggest lenders to the group that is known for funding infrastructure projects include UCO Bank, Canara Bank, Bank of India and Axis Bank, among other banks, said two people aware of the development, who spoke to Business Insider requesting anonymity. The persons cited above said that the group owes ₹30,000 crore, whereas the company, which disputed the figure, told Business Insider that the amount due to the lenders is ₹28,000 crore (about $4 billion). “The company’s total liabilities are around ₹18,000 crore of bank loans and another ₹10,000 crore of external commercial borrowings and bonds. However, realizable assets, including arbitration awards, are higher. Therefore, we believe we can pay all our creditors over a period of time if structured in line with cash flows,” said a company spokesperson in an email reply to Business Insider’s queries. Loans given to Srei Group, according to the first of the two people cited above, who is a senior executive at one of the lenders to the group, have already been tagged as non-performing. The bank, he said, has been waiting for a go-ahead from the banking regulator on further action. The restructuring option proposed by the Group, the executive said, would allow lenders to recover just 30% of their dues over a nine-year period, even if a moratorium was to be offered initially. As no sustainable recovery options emerged, he said, it felt prudent to recognise Srei’s loans as NPA. The second of the two people cited above, who is also an official at one of the banks that had lent to Srei, told Business Insider that it was in the process of recognising Srei’s loans as non-performing over the next three months, as no resolution plan has been agreed upon between Srei and its creditors. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div class="flourish-embed flourish-table" data-src="visualisation/7315356"><script src="https://public.flourish.studio/resources/embed.js"></script></div>]]></cdata></div> <cmsannotation type="cmsannotation" annotationid="Recovery efforts at Srei Group" comment="subhead" text="Recovery efforts at Srei Group">Recovery efforts at Srei Group</cmsannotation> In October 2019, Srei had transferred all the assets and liabilities of Srei Infrastructure Finance Ltd. to its wholly-owned subsidiary Srei Equipment Finance Ltd. via a slump exchange. The business transfer agreement, the company said, was executed after getting approvals from its shareholders, debenture trustees, few lenders, stock exchanges and an in-principle approval from some of the domestic lenders including lead banks. But the company's already stressed balance sheet suffered a major blow during the pandemic, further impairing its ability to repay dues. "Owing to the Covid-19 pandemic, including the second wave followed by extended lockdown from time to time and the moratorium, collection from borrowers and the lessees were severely impacted. In addition, it adversely affected the company’s liquidity during the year resulting in a cash flow mismatch as NBFCs like Srei Equipment Finance Ltd. were not allowed any similar moratorium by banks and financial institutions," Srei said in its emailed response. <div type="javascript" title="CardEmbed" contenttype="Image"><cdata><![CDATA[<div class="flourish-embed flourish-chart" data-src="visualisation/7315676"><script src="https://public.flourish.studio/resources/embed.js"></script></div>]]></cdata></div> Later, in Oct. 2020, Srei Equipment Finance approached the Kolkata bench of the National Company Law Tribunal for debt realignment and seeking creditor approval on its business transfer agreement. The restructuring options proposed by the group, however, did not get a go-ahead from all its creditors. "To pay back its lenders in a structured and orderly manner, the company submitted a scheme in October 2020 for paying back principal and interest over time to banks and financial institutions. The company also offered the option of modifying the proposed repayment schedule to be suggested by the creditors," the company said in the emailed reply. While a section of creditors agreed to the respective schemes that proposed payment over time, a few others, including banks, are yet to agree or offer Srei a modified repayment schedule on how they would like to be paid over time, it said. Even as Srei remains in discussion with its creditors, it said in July that the group had got term sheets from Singapore's Makara Capital Partners for an investment of ₹2,200 crore, and from US-based Arena Investors for investment of ₹2,000 crore. On Sep. 10, the group also sold one of its subsidiaries, Trinity Alternative Investment Managers Ltd. for ₹1.32 crore. But talks of a potential investment or the debt restructuring options offered by Srei have failed to strike a chord with its creditors. Lenders don’t want to give any leeway and so, the incoming bad bank may be an option As of March this year, an escrow account with Srei’s lead banker UCO Bank had collected ₹1,568 crore, as per its latest annual <a href="https://www.bseindia.com/xml-data/corpfiling/AttachHis/7fe5e539-f9d1-4625-9741-ca7e60a89014.pdf">report</a>. The Trust and Retention Account (TRA) allows Srei’s lenders to control all its cash flows, including business and operational payments. “Nevertheless, banks are already controlling the company’s cash flows since November 2020, and substantial collections have happened. It has enabled the bankers to distribute the money among themselves. At present, a payment schedule from them is awaited in view of the modification to the scheme submitted to the Honorable Tribunal,” it said. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div class="flourish-embed flourish-chart" data-src="visualisation/7315489"><script src="https://public.flourish.studio/resources/embed.js"></script></div>]]></cdata></div> But debt resolution remains elusive as Srei continues to suffer a severe cash crunch. As of June 30, the group’s net worth had fully eroded and it was not able to comply with various regulatory ratios/limits, it said in a stock exchange filing on Aug. 14. “All this may have an impact on the Group's ability to continue its operations in normal course in future and to meet its financial commitments as and when due,” it said. Besides, an inspection by the Reserve Bank of India on Srei Infrastructure Finance and Srei Equipment Finance in March last year showed loans being potentially extended to related companies. The group’s total exposure to such borrowers, it said, is ₹7,961 crores as on June 30, 2021. Based on Srei’s current state of affairs, said Jignesh Shial, head of Banking, financial services and insurance sector at InCred Capital, it makes more sense for lenders to recognise it as NPA on their books, and then the RBI could take charge of its resolution. “It is possible that the lenders may want to sell down Srei's bad loans assets to the National Asset Reconstruction Company Ltd. at a later stage, but even that option is not immediately available,” he said. On Sep. 16, the central government cleared a proposal to provide ₹30,600 crore government guarantee for security receipts issued by the National Asset Reconstruction Company (NARCL), as part of resolution of bad loans. NARCL, or the proposed bad bank, is an asset reconstruction company set up by Indian banks to help them consolidate and take over existing stressed assets for their subsequent resolution. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/sbi-cards-is-down-as-carlyle-dumps-shares-but-the-credit-cards-business-is-bouncing-back/articleshow/86390713.cms">SBI Cards is down as Carlyle dumps shares but the credit cards business is bouncing back</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/india-to-canada-travel-open-check-out-covid-19-rules-and-air-ticket-price/articleshow/86390653.cms">Air Canada, Emirates, Air India and other airlines resume flights to Toronto and the tickets are priced up to ₹5 lakh</a>

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