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What we will do
Select equity route, assess requirements & shortlist investors
Prepare valuation, projections & investor pitch decks
Engage investors, launch due diligence & finalise terms
Manage RBI filings, FEMA compliance & share issuance
Obtain approvals, process fund infusion & allot shares
Non-banking financial companies often require capital to meet their operational needs. If your business is also looking to raise funds, we at DrNBFC can facilitate a seamless process to ensure your financial requirements are fulfilled on time. While you have various options to raise funds, equity raise for NBFC offers an excellent opportunity to manage capital without the burden of increasing debt.
Equity raise is an important funding strategy for NBFCs, which enables the financial institutions to expand their lending operations, boost capital adequacy, and attract strategic investors. However, as part of raising funds through this option, NBFCs are required to issue shares to investors and transfer ownership rights to them in proportion to the amount invested.
While it does not mandate the businesses to return the amount raised, the capital infused through equity raise for NBFCs improves their financial health, aligns with regulatory compliance needs, and facilitates operational scalability. If your NBFC is at this stage, we can help you achieve long-term sustainability, diversification, and tech upgrades. Our comprehensive service offerings through DrNBFC include finding a suitable funding pathway and investor, paperwork support and managing investor onboarding.
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DrNBFC can help your business benefit from private equity for NBFCs, as it offers various advantages. It not only opens the gateway to long-term financial access and sustainable growth but also helps strengthen your finances. Through this source of fundraising, your NBFC can achieve financial stability, improve its operational efficiency, and be expansion-ready. Key benefits of equity funding are listed below:
Is your NBFC exploring options to raise funds? Our team can assist you in initiating the process for equity infusion in NBFC. While the procedure is comprehensive and exhaustive, we can streamline it for your NBFC. Our experts can evaluate your NBFC's capital requirements and, based on the findings, suggest an appropriate funding pathway from private equity, venture capital, or FDI.
At DrNBFC, we help you meet your paperwork needs, including valuation reports, business plans, and investor pitch decks. Our end-to-end services also include passing the board and shareholder resolutions, which are mandatory for authorising equity issuance. We also help you identify and approach suitable investors, negotiate terms, finalise the term sheet and manage the regulatory requirements. DrNBFC is a trusted industry name and has helped our clients meet their financial requirements.
The procedure for NBFC funding through equity is complex and exhaustive. DrNBFC helps you access your funding needs and choose a suitable equity raise source from the available ones - Private Equity (PE), Venture Capital (VC), Foreign Direct Investment (FDI), or strategic investment, depending on your business objectives.
Our experts assist you in drafting the necessary valuation reports, business plans, financial forecasts, and investor pitch decks. We also assist you in presenting these decks to your potential investors for successful funding.
As part of the next step in seeking private equity for NBFCs, our consultants guide you in approaching the shortlisted investors. We also help initiate the due diligence checks and finalise the term sheet that outlines equity terms, valuation, and governance models.
Our comprehensive services for NBFC funding through equity also include assisting you in obtaining approvals from your board or shareholders. We also help you meet compliance requirements by guiding you through filing RBI and FEMA-related compliance, along with publishing a public notice (to inform of any changes in control).
We guide you with the next part of the NBFC capital raise strategy. It includes helping you receive your equity capital, allot the shares to investors, and update ROC filings and NBFC records as per the requirements.
Want to fuel your NBFC's strategic growth? Partner with DrNBFC for equity raise for NBFC services to streamline access to funding capital to meet your financial needs.
Available NBFC Equity Funding Options: Private Equity (PE), Capital (VC),
Foreign Direct Investment (FDI), Strategic Investors, Family offices,
HNIs & Institutional Co-Investors.
If your business is seeking to raise capital through private equity investment, then it is important for you to know that adherence to legal, financial, and operational criteria is a must. The eligibility checklist for private equity for NBFCs includes:
According to the applicable Act, a private limited company must have a minimum of two members, with a maximum limit of 200 shareholders.
If your NBFC plans to raise equity, it must ensure registration with the Reserve Bank of India (RBI). It must be able to able to an active Certificate of Registration (CoR) to ensure its eligibility.
NBFCs exploring the private equity option to raise funds must be operational for at least three years. Private investors prefer to invest in non-banking financial companies that display a sound financial track record and a proven working history of at least three years.
It is a must for non-banking financial companies to ensure that their NBFC capital raise strategy includes strong internal controls, strict regulatory compliance, and transparent financial reporting systems. Private investors prefer to invest in NBFCs that implement robust governance and compliance measures.
An equity raise for NBFCs provides non-banking financial institutions access to capital for meeting their financial requirements. However, it is a must for any such NBFC to outline its growth plans and fund disbursal strategy to increase investor confidence and approval chances.
One of the mandatory requirements for NBFCs seeking private equity is to maintain a healthy balance sheet. NBFCs that display profitability, promote sustainability and lower investor risks are preferred by investors.
All NBFCs require capital to manage their daily operations. Equity raise for NBFCs is one such source of funding for financial institutions. DrNBFC has the expertise to guide you in meeting your business's capital requirements. Equity raise not only helps your NBFC attain long-term sustainability but also achieves strategic expansion. Some of the key reasons for equity raise for NBFC are mentioned below:
One of the primary reasons NBFCs seek equity funding is to infuse capital for managing day-to-day operations. Not just that, equity flow also helps a non-banking financial company to expand its network and reach, implement technology upgrades, and launch new products to serve the underserved markets.
Equity infusion in NBFC is one of the mandatory compliance requirements listed by the Reserve Bank of India (RBI). NBFCs must strengthen their Tier-I capital through equity funding to facilitate compliance with the rules and ensure hassle-free operations.
NBFC funding through equity helps the business strengthen its equity base, which in turn, improves its financial health and credit ratings. NBFCs with robust financial stability and creditworthiness find it easy to attract investors and seek additional funding.
A planned equity raise for NBFCs is good for the overall health of the business. On the one hand, an equity raise attracts investors, on the other hand, it also draws industry experience, expertise, governance, and growth mentorship, helping an NBFC boost its operational efficiency.
NBFCs that successfully manage to inject capital into the business are able to support their digital innovation dreams. NBFCs with sufficient funds can easily invest in digital lending platforms, automation, and AI tools, which help them to stay competitive in the dynamic business landscape.
If your financial institution is seeking to raise capital, you need to know that choosing the right NBFC equity funding options is important. DrNBFC has the expertise to evaluate your business requirements and match you with the right funding source. We assess your needs depending on your NBFC's stage, size, and compliance status. Some of the equity raise options available include:
Private equity for NBFCs is one of the most prominent sources of funding available to non-banking financial companies. This type of equity funding attracts institutional investors who are willing to inject capital into your business in exchange for a significant ownership stake. In turn, your NBFC can use the capital to support its growth stage by leveraging strategic guidance brought in by the experienced investors.
Venture capital (VC) for NBFCs is another option available to raise capital. However, it is ideal for early-stage or tech-enabled NBFCs. Venture capital firms explore investment alternatives and prefer to invest in high-potential businesses that are seeking to innovate and expand rapidly.
Foreign Direct Investment or FDI in NBFCs is another type of capital that is infused into an NBFC by foreign investors, including foreign institutions, private equity funds, or corporations. FDI can be injected through the automatic route that does not require any prior approvals from the government. The other way is the approval route, which depends on the NBFC’s line of business. All capital investments under FDI must comply with the Foreign Exchange Management Act (FEMA) regulations, RBI guidelines, and sectoral caps (Which are up to 100% in most NBFCs under the automatic route).
Another way of seeking equity raise for NBFCs is through strategic investors. These investors not only support the NBFCs with capital injections, but they also bring relevant industry expertise, collaborations, and operational synergies, helping the NBFCs scale up their current operations.
Non-banking financial companies can also raise capital through investments from high-net-worth individuals and family offices. These sophisticated investors prefer to invest directly in NBFCs that seek capital diversification, however, with lower regulatory requirements and complex procedures.
Case Study 1: Private Equity Infusion for a Mid-Sized NBFC
Client: Mid-sized NBFC specialising in SME lending, based in Ahmedabad
Challenge: Our client was unable to meet the high demand for loans from SMEs due to capital constraints and regulatory capital adequacy norms. It was experiencing growth stagnation as its traditional debt funding options were nearing exhaustion. The NBFC was in dire need of a significant equity infusion to bolster its balance sheet and scale its lending operations.
Solution: Our equity raise consultants at DrNBFC guided the client to structure a private equity deal. We prepared a strong investor pitch for them, identifying the investors aligned with their NBFC's growth objectives. Our comprehensive services included managing their due diligence process and negotiating the terms. We walked them through the process and provided constant assistance throughout the valuation, ensuring they met their regulatory compliance requirements for equity issuance.
Outcome: Our client successfully raised ₹75 crore through private equity from a reputable investment firm. We helped them complete the end-to-end process within 5 months. The newly infused capital not only boosted their NBFC's capital adequacy ratio but also helped grow its loan book by 40% within the next two quarters. The equity raise also helped our client improve their credit rating and regain investor confidence.
Case Study 2: Strategic FDI Partnership for a Fintech NBFC
Client: Delhi-based fintech NBFC offering consumer finance solutions
Challenge: Our client was determined to venture into international operations, expand their business, and diversify their product offerings. However, they lacked the capital base needed to execute their plan. While the promoters were keen to explore the FDI route, they were confused and overwhelmed by the regulatory requirements. Besides, interpreting RBI compliance and investor onboarding procedures for foreign entities was a complex job for them.
Solution: Our experts at DrNBFC ensured that the client entered into a strategic partnership with a Singapore-based VC firm. Our team handled the comprehensive FDI procedure, including FEMA compliance, structuring of shareholder agreements, RBI reporting, and liaising with legal advisors and auditors to manage and streamline the documentation and due diligence processes.
Outcome: The client successfully onboarded a foreign investor and raised ₹50 crore in equity within 4 months. This FDI infusion at a crucial juncture facilitated the NBFC's launch of two new digital lending products, along with expanding its operations to three more metro cities. Additionally, their strategic investor not only infused capital but also opened a gateway to learning through tech mentorship and global market insights.
DrNBFC is one of the most trusted brands for equity raise for NBFCs. Given below are the reasons why thousands of NBFC founders trust us-
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