NBFC Credit Wise Capital closes Rs 200-crore round led by Trident Growth Partners

Credit Wise Capital Raises ₹200 Crore in Funding Round Led by Trident Growth Partners

Mumbai, July 8, 2025: Credit Wise Capital, a rapidly growing non-banking financial company (NBFC) specializing in consumer lending, has successfully raised ₹200 crore in its latest funding round. The investment was led by Trident Growth Partners, with participation from several family offices and high-net-worth individuals (HNIs). The fresh infusion of capital is expected to support the company’s expansion into underserved markets, bolster its technology infrastructure, and strengthen its loan book.

Trident’s Strategic Bet on Consumer Finance

Trident Growth Partners, a prominent growth-stage investor with a track record of backing high-potential financial services and fintech startups, is making its first significant bet in the NBFC space with this investment. According to people familiar with the deal, Trident sees significant potential in Credit Wise Capital’s tech-driven lending model, particularly its focus on two-wheeler financing and entry-level consumer durables.

“Credit Wise Capital is leveraging data, automation, and AI to solve real problems in credit underwriting and distribution. We believe the Indian retail lending market is on the cusp of transformation, and CWC is well-positioned to lead that change,” said Raghav Malhotra, Partner at Trident Growth Partners.

A Growing Market for Retail Credit

Credit Wise Capital has been riding the wave of rising demand for consumer credit in India’s tier 2 and tier 3 cities. As economic activity rebounds and credit penetration deepens, NBFCs like CWC are stepping into the gaps left by traditional banks.

The NBFC focuses heavily on two-wheeler loans, with a growing portfolio in digital EMI financing for smartphones, appliances, and small-ticket consumer goods. According to company data, Credit Wise Capital has disbursed over ₹1,000 crore in loans to date, with a 75% customer retention rate and strong asset quality.

“Our mission is to democratize credit access. We use advanced underwriting models based on alternative data to lend to new-to-credit customers. The latest round allows us to scale responsibly while maintaining our NPA levels well below the industry average,” said Varun Mehta, CEO and co-founder of Credit Wise Capital.

Use of Funds: Tech, Expansion, and Risk Management

The company intends to use the newly raised capital for three primary purposes:

1. Geographic Expansion: Credit Wise Capital plans to double its physical and digital presence across 150 cities in the next 18 months.

2. Technology Enhancement: It will enhance its proprietary credit assessment engine and borrower app to improve loan turnaround times and digital servicing.

3. Strengthening Risk and Compliance Frameworks: A portion of the capital will be invested in bolstering the risk management and regulatory compliance apparatus, in line with RBI's evolving guidelines for NBFCs.

“We’re seeing immense demand for credit at the bottom of the pyramid. Responsible growth hinges on building scalable tech and strong risk systems, and that’s where this capital will be deployed,” Mehta added.

Sectoral Context: Investor Appetite for NBFCs Revives

The fundraising by Credit Wise Capital comes at a time when NBFCs are once again attracting investor interest. After a brief lull caused by regulatory tightening and liquidity challenges post-pandemic, investors are returning to the sector, buoyed by signs of macroeconomic stability, credit growth, and fintech innovation.

According to RBI’s April 2025 report, NBFCs registered a 17% year-on-year increase in credit disbursals, with retail credit forming the bulk of new lending. Asset quality has also improved, with gross NPAs for the sector declining to 3.8% in FY25 from 5.1% in FY23.

Analyst Commentary: A Strong Signal for the Sector

Market analysts believe Credit Wise Capital’s successful fundraise is a reflection of broader investor optimism about the NBFC ecosystem, particularly those with digital-first operations and a sharp focus on niche segments.

“CWC's ability to raise ₹200 crore in a single round — led by a growth-focused investor like Trident — sends a strong signal. It reinforces confidence that well-run, tech-enabled NBFCs will continue to attract both equity and debt capital, even in a rising interest rate environment,” said Arpita Shah, banking sector analyst at Axis Securities.

Investor Outlook: Betting on Underserved Bharat

Investors see immense growth potential in NBFCs catering to India’s next 400 million — the aspirational middle class in non-metro regions. The focus on vehicle finance, buy-now-pay-later (BNPL) alternatives, and low-ticket consumer credit products allows players like Credit Wise Capital to build a high-yielding loan book.

Moreover, the ongoing digitization of financial services is reducing operational costs and improving underwriting accuracy, thereby boosting return on equity (RoE) potential.

“The next fintech opportunity in India is not just about apps; it’s about building deep distribution and trust in local communities. CWC’s hybrid model — combining digital tools with on-ground presence — is a step in that direction,” said Rahul Varma, an angel investor and advisor to multiple NBFCs.

Capital to Fuel the Next Phase

Credit Wise Capital’s latest fundraising round is not just a validation of its business model, but also a bellwether for the wider NBFC ecosystem in India. With a solid war chest, expanding addressable market, and institutional backing, the company appears well-positioned to scale profitably while maintaining credit discipline.

As India’s demand for credit continues to rise — particularly among first-time borrowers — investors and lenders alike will be closely watching how nimble players like CWC shape the future of financial inclusion.