Overview – The Stashfin Private Limited Bond on Altifi

Details of the Corporate Bond:

• Name of the Issuer: Stashfin Private Limited
• Product: Senior secured Bonds (regulated by SEBI)
• Yield: 13% p.a.
• Tenure: ~ 2 months
• Min Investment: ~ Rs 1,50,000
• Interest repayment: Monthly
• Principal repayment: Quarterly
• Rating: India ratings BBB

Key Highlights:

• Strong backing of investors such as Tencent, Kravis Partners, Fasanara Capital, Altara Ventures, Uncorrelated etc
• Strong growth in AUM over the last fiscal to INR 1799 crore in Dec'23 from INR 1465 crore in Mar'23. As of Dec23, the company had a Net Worth of INR 471 crore.
• Comfortable capitalization levels with CRAR of 25.4% as of Dec'23 with leverage of 2.3x; supported by capital raise of INR 105 crore in FY'23 from its parent.
• Portfolio quality is maintained with controlled PAR90 level in the range of 4-5% in q3’24.

Overview:

Akara Capital (Stashfin) is a Delhi-based non-deposit taking NBFC registered with the Reserve Bank of India (RBI) since 2016. It started operations in 2017. The company primarily provides unsecured short-term personal loans to salaried individuals through web and mobile platforms. It was started by Mr. Tushar Aggarwal, Ms. Shruti Aggarwal and Mr. Parikshit Chitalkar, who have several years of experience in the financial services industry. Akara Capital is currently owned by Morus Technologies, a Singapore-based neo banking startup backed by investors like Tencent Group, Fasanara Capital, Altara Ventures, Uncorrelated Ventures, etc.

Stashfin provides affordable financial products to borrowers in India to meet their credit needs and is among the top 5 financial services platforms. The firm also strives to create opportunities for borrowers with limited credit footprints to participate in the formal financial system, thereby enabling them to build their credit footprint and successfully embark on a journey of economic freedom.

Stashfin offer loans up to ₹ 5,00,000 with repayment periods up-to 36 months. All loans are paid through Equal Monthly Instalments (EMIs) via electronic payment. We do charge low platform fees and have no other hidden costs. Stashfin had an AUM of INR 1799 crore Dec 31,2023 Operations are spread   Maharashtra, UP and Gujarat are the major states at 12%, 9% and 8% resp.

Promoter/ Management:

Tushar Aggarwal - Founder and CEO: Tushar has over 20 years of experience in investment banking and private equity. Before founding Stashfin, Tushar was Executive Director at Everstone Capital, a private equity firm based out of New Delhi where he led the firm’s investments in Northern India across retail and financial services. Prior to General Atlantic, Tushar was an investment banker in the mergers and acquisitions team of Lehman Brothers based out of New York. Tushar started his career with Goldman Sachs in New York. He holds a BE in Electrical Engineering from Stony Brook University, where he graduated Magna cum Laude. Tushar holds an MBA from The Wharton School at the University of Pennsylvania and the CFA charter.

Shruti Aggarwal – Co- Founder: Shruti has over 20 years of experience in financial services and entrepreneurship. Prior to Stashfin, Shruti was the Founder and CEO of Secret Cach New York, a premier boutique in the US. She was earlier an investment banker with Merrill Lynch in New York and PwC in India. In her capacity as an investment banker, she has executed transactions worth over $1bn. Shruti is a Chartered Accountant and has completed her master’s from Columbia University and Bachelors from SRCC. She is an active member of FLO, Yi and Ellevate.

Key Financials: (Standalone)

All figures in INR crore

ACAPL’s portfolio comprises personal loans with an average ticket size of INR 50k-1L. It has its presence in 36 states/UT.

Lenders:

The prominent lenders in Akara Capital are:

Banks/ PE/ VC firms:

• ICICI Bank
• Federal Bank Ltd
• Au Small Finance Bank
• Trifecta Capital
• Innoven Capital

NBFCs and FIs:

• Northern Arc Capital
• Shine Star Build-Cap
• Mas Financial Services
• Avendus Capital
• OXYZO Financial.

Disclaimer: The content of this blog should not be considered as financial or investment advice. Readers/Viewers may consult their financial advisor before any investment.