Credit Wise Capital to raise Rs 200 crore through share sale
Synopsis Credit Wise Capital (CWC), a two-wheeler financing-focused non-bank lender, is raising Rs 200 crore through its first institutional investment round led by Trident Growth Partners, who invested Rs 120 crore for an 18% stake. The funding will fuel business growth and enhance CWC's tech capabilities. Credit Wise Capital (CWC), a non-bank lender with a focus on two-wheeler financing, is in the process of raising Rs 200 crore by selling shares in its first ever institutional investment.
ADVERTISEMENT Bengaluru-based private equity fund Trident Growth Partners has led this funding round with Rs 120 crore for about 18% stake in 2019-born lending start-up, people aware said. The balance Rs 80 crore is being funded by large family offices and other investors.
With this, CWC has expanded its net worth to Rs 275 crore.
'Trident Growth Partners is the first institutional investor on board, joining us as a long-term strategic partner,' Aalesh Avlani, co-founder of CWC, told ET.The capital will help the company grow business and strengthen its tech stack.This marks Trident Growth Partners' second investment in the non-banking space, managing partner Atul Gupta told ET. The private equity player raised Rs 1000 crore at the first close of its debut fund earlier this year.
ADVERTISEMENT CWC, which started lending in 2021 with Mumbai as the first market, had Rs 646 crore assets under management at the end of March, up 32% from Rs 489 crore a year back.The company's capital adequacy ratio stood at 31.2%, with a gearing of 2.3x and the number of two wheelers financed had crossed over 200,000.
ADVERTISEMENT "The aim is to take it to Rs 4,500 crore by March 2030 with a 50:50 split between two wheeler loans and micro loans against property," Avlani said.The company started offering Rs 5-10 lakh loans against property (LAP) to its existing borrowers only last month.
ADVERTISEMENT "The two-wheeler will be the acquisition strategy. It'll be my high ROA product, and microlap will be my high AUM product," Avlani said.
CWC follows a branchless model but its technology helped it to cater to customers in 215 cities across 10 states at present.
(You can now subscribe to our ETMarkets WhatsApp channel)
Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share
Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained
Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms
Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips
L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first?
Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more
SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders
API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading
Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains
Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains
NEXT STORY
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
29 minutes ago
- Time of India
Textiles exporters face fresh trade uncertainty amid Trump's latest announcements
NEW DELHI: US President 's latest tariff announcements have resulted in fresh uncertainty, with buyers expected to go slow on new orders. While textiles exporters seem to have got an advantage over Bangladesh, which has been slapped with 35% duty by Trump, industry is keeping close tabs on India's bilateral trade deal with the US as the American president has claimed the agreement with Vietnam allows him to impose a 20% tariff, although there may be product-specific concessions. Tired of too many ads? go ad free now In any case, the final word is not out on where tariffs settle in the coming weeks, with countries, including Bangladesh, once again rushing to Washington to rebalance the equations. "We need to watch how tariffs move. Buyers are a little confused at the moment," said V Elangovan, managing director of Tirupur-based SNQS International. What is adding to the complications is China. "Retailers have to fill their shelves. Last week, our merchandisers were in Shanghai, we could not compete because the Chinese were quoting better prices this year than last year. It is not clear how they can do so when the tariff for them is higher. We need more hand-holding from govt," he added. Govt and industry has been pushing for zero duty for garments and home textiles, where Indian products are competitive, although it is unlikely even if a trade deal is worked out as the Trump administration has refused to remove the 10% baseline tariff applicable on all countries. At 10%, Indian exporters are seen to be better off than rivals, provided subsidies are not doled out to Chinese manufacturers. In natural garments, where India has traditional strength, the cost disadvantage is relatively small, 3-4%. However, in synthetic garments, the gap widens to 10-11% due to higher production costs, Apparel Export Promotion Council (AEPC) said. "India, even with the existing reciprocal tariff rate (26% announced in April), will gain in export competitiveness vis-a-vis major garment exporting competing countries. Tired of too many ads? go ad free now Besides, we are quite hopeful of India striking a favourable trade deal which will further improve the competitiveness of India's apparel exports in all important US market... even a moderate reduction in the reciprocal tariff to around 15% could significantly improve our competitiveness across both natural and synthetic garment categories, thereby opening infinite export possibilities for India amid shifting global sourcing trends," said AEPC CEO Mithileshwar Thakur. With current tariff levels - India at 26%, Vietnam at 20%, and Bangladesh at 35% - India is seen to be competitive against Bangladesh in natural garments but faces pressure in the synthetics segment. "It is looking good for us and a trade deal will help," said K M Subramani, president of Tirupur Exporters' Association. The big question is the ability of Indian garment makers to manufacture on a scale, especially given their reluctance to invest in capacity addition.
&w=3840&q=100)
India.com
32 minutes ago
- India.com
Dollar Dominance, Trade Risks & Delhi's Balancing Act – Why Trump's BRICS Threats Matter For India
New Delhi: At a time when India inches closer to finalising a trade deal with the United States, a thunderclap from Washington has cast shadows over the celebration. US President Donald Trump's blunt message, posted publicly this week, warned that any country aligning with what he described as BRICS' 'anti-American policies' would face an additional 10% tariff without exceptions. As one of the founding members of BRICS, India finds itself at the centre of this growing storm. The recently concluded Rio de Janeiro summit of the bloc had laid out an ambitious declaration. There was no mention of the United States, but it still sent ripples through Washington. The BRICS statement challenged unilateral economic measures, defended multilateralism, voiced concern over tariffs that disrupt global trade and pushed for changes to global governance. These words appear to have stung. What followed was Trump's retaliation. On his Truth Social platform, he wrote that siding with BRICS' economic vision would come at a cost. The timing could not have been more crucial. He is expected to begin announcing trade deals from Monday, and India is among the countries on the list. In Delhi, this new tension is being watched with a mix of caution and calculation. Trade experts in the capital believe the core of Trump's anger lies deeper within the BRICS push for currency alternatives. For years, Russia and China have spoken of a new financial system to bypass the dollar. In 2022, Russia even floated a proposal for a BRICS reserve currency. Many Indian analysts suspect this is what triggered Trump's fury. The dollar remains Washington's most powerful economic weapon. The United States used it in 2012 to isolate Iran and again in 2022 against Russia. Any attempt to weaken its grip invites blowback. Despite its lack of political cohesion, BRICS still threatens that power by raising the idea of currency diversification. Indian economists see the bigger picture. The call for a common BRICS currency faces hurdles. Political will is scattered. China's dominance in the bloc sparks unease among other members. But the conversations alone unsettle Washington. That is why even vague references to multilateral financial systems draw fire. Meanwhile, India, experts are of the view, must walk a fine line. It is preparing for what is being described as a 'mini trade deal' with the United States. Reports suggest Delhi has already agreed to a baseline 10% tariff, but higher rates – up to 26% – remain on the table. Agriculture and dairy continue to be sticking points. At the same time, India cannot ignore its standing in BRICS. It shares that space with strategic rivals like China but also long-standing defence and energy partners like Russia. The bloc includes emerging economies looking for new trade paths. Turning away completely would be costly. Domestic industry lobbies in India are growing nervous. Sectors like textiles, pharma and information technology could suffer if Trump hikes tariffs further. Executives fear the fallout of a new wave of American protectionism. What adds to the anxiety is the unpredictability. Trump has changed course before. His sudden termination of a long-standing free trade pact with Vietnam has become a cautionary tale. Despite the tensions, some foreign policy voices in Delhi urge calm. They argue that BRICS has always been an idea more than an institution. Its members rarely share political agendas or geographical interests. But that has not stopped it from becoming a target. Others believe Trump's aggressive approach may backfire. His posture could push India to double down on groups such as BRICS and the Global South. But that path brings its own dilemmas, especially with China pulling the strings in many of these platforms. At the heart of it all, the challenge remains the same – can India navigate between its old allies and emerging coalitions without inviting punishment from either? With Trump's new tariffs looming, the question is no longer hypothetical. The countdown has begun.
Deccan Herald
33 minutes ago
- Deccan Herald
Lorry owners withdraw stir after Karnataka govt promises payment
Of the Rs 244.1 crore that the government has decided to disburse, Rs 180.63 crore will be allocated from general category quota, while Rs 43.93 crore will be sourced from Scheduled Caste Sub-Plan (SCSP), and Rs 19.52 crore from Scheduled Tribe Sub-Plan (STSP).
