Home / Companies / News /  NBFC Indel Money raises 50 cr via first tranche of market-linked debentures

Indel Money, the flagship company of Indel Corporation, on Thursday, announced the raising of 50 crore through the first tranche of its principal-protected market-linked debentures (MLDs). The issue offers a fixed coupon rate and comes with tenures of 16 and 18 months. The company plans to utilise the fresh capital from MLDs for expanding its book size along with its footprint.

The MLDs were issued on August 30, 2022, through Yubi (formerly CredAvenue), a fintech debt marketplace.

In a statement, Indel Money stated that the first tranche of MLDs witnessed rapid subscription from HNI offices/investment houses from cities like Mumbai, Delhi, Chennai, Jaipur, Ahmedabad, etc.

Umesh Mohanan, Executive Director and CEO, Indel Money Ltd said, “We are pleased to witness such a strong demand for the first tranche of our MLDs. It underlines the trust of the investors in the competitive strength of our business model and our enhanced position in the gold loan industry."

The CEO added, "The market placement expertise of Yubi also helped us develop a broad investor base for the MLDs. For investors, our MLDs offer a short-tenure investment option with principal protection and assured return/pay-off despite market volatility. Our gold-backed MLDs aptly address the illiquidity concerns over the investments."

Indel Money plans to raise additional 250 crore by issuing the second tranche of the MLDs in Q3FY23.

"The MLDs will help us further diversify fund-raising avenues. The launch of MLDs is a part of our mission to expand our presence across India and further build our operational efficiency. We look forward to a stronger investor traction for the second tranche scheduled in Q3FY23," Mohanan added.

Currently, Indel Money presently has more than 225 branches across the southern part of the country and Odisha. The company ventured into Odisha in January earlier this year with 25 branches.

Notably, Indel Money is set to add 90 branches in FY23 to its network by foraying into Maharashtra in Q3FY23 and Gujarat in Q4FY23. The company aims to take the branch network to more than 500 across 11 states by 2023 to cater to the underserved credit demand.

Indel Money is a non-deposit taking and a systemically important non-banking finance company (“NBFC") in the gold loan sector lending money against the pledge of household gold jewellery. Indel Money also provides loans against property, business loans, and personal loans.

Indel Money has a network of 225 branches spread in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Odisha, Telangana, and the union territory of Puducherry.

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