- Newtap NBFC previously known as Parfait Finance soars with Rs 5.6 Cr profit, and Rs 15.5 Cr revenue in FY2023.
- Kunal Shah's Cred invests Rs 79 Cr for Newtap's growth, RBI later rejects stake boost.
- Newtap's Parfait Finance acquisition sparks broader lending prospects, and secured loans.
In a captivating narrative that interweaves financial acumen, strategic maneuvers, and regulatory intricacies, Newtap, the dynamic non-banking financial company (NBFC), has garnered significant attention. Through a meticulous analysis of Registrar of Companies (RoC) filings, it has been revealed that Newtap experienced a windfall in the fiscal year 2023, with profits surging to an impressive Rs 5.6 crore.
This cascade of success was further bolstered by a substantial increase in revenue, scaling to Rs 15.5 crore from the previous year's modest Rs 6 lakh. However, this tale takes a riveting turn, redefining the trajectory of Newtap's future.
Directing our focus towards the captivating investment landscape, the infusion of a noteworthy sum of Rs 79 crore by the visionary Kunal Shah and his brainchild, Cred, serves to further emphasize their unwavering commitment to Newtap's soaring aspirations. This strategic maneuver was intended to expedite Newtap's evolution, transforming it into a financial powerhouse.
However, as the saying goes, every tale has its unexpected turn. As the digital sands of August 18, 2023, trickled down, the Reserve Bank of India (RBI) adroitly exercised its regulatory authority, rejecting the audacious application by Kunal Shah's Cred to augment its stake in Newtap Finance.
The stage was set for a clash of corporate giants, with stakes extending far beyond mere numerical values. This pivotal decision, shrouded in the enigmatic guise of "corporate governance and management issues," as murmured by the ever-vigilant sources of YourStory, adds layers of intrigue to the saga. (Source: YourStory)
History of Newtap
Newtap's narrative has expanded with the strategic acquisition of Parfait Finance & Investment, a non-banking financial company (NBFC) that has been granted the coveted Reserve Bank of India (RBI) seal. This alliance was established with the aim of harnessing the power of synergy and extending lending solutions to the esteemed users of Cred.
However, the story does not end there; it evolves into a tale of bold expansion. Newtap Finance is no longer confined to Cred's ecosystem and is now spreading its wings, with a broader horizon of lending possibilities in sight. The blueprints for this expansion are intricate, involving the securing of independent funding in both the debt and equity realms, as the company strives to redefine the contours of the lending landscape. (Source: Entrepreneur India)
Interestingly, at the heart of this narrative lies an uncharted terrain of conjecture and uncertainty. The rationale behind the RBI's rejection, attributed to "corporate governance and management issues," remains shrouded in ambiguity.
Whispers from various quarters have been enigmatic and contradictory, adding to the mystery surrounding the episode. As financial experts attempt to unravel this enigma, they scrutinize the company's financial tapestry, seeking elusive answers to the eternal question of whether to ascend the ownership ladder. (Source: Entrepreneur India)
Currently, Newtap plays a significant role in the lending industry, serving as the cornerstone of Cred's innovative "buy now pay later" marvel, the Cred Flash, and fueling personal loans under the moniker Cred Cash. This orchestration of financial instruments is further harmonized through collaborations with fellow lending partners, resulting in a rich symphony of fiscal empowerment.
However, amidst this intricate narrative, the chasm of the unknown continues to widen. The "corporate governance and management issue" that prompted the RBI's pivotal decision remains a riddle wrapped in an enigma. As financial experts dissect and deliberate, the ultimate verdict remains elusive.
In the evolving saga of Newtap, questions of ownership and ascendancy intertwine, painting a tableau that blends financial acumen with regulatory prowess, creating a narrative both intriguing and enigmatic.
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Edited by Shruti Thapa