Fintech platform True Balance, operated by Balancehero India, has raised $10 million (about ₹72 crore) in debt funding from a group of investors led by Northern Arc Capital, along with other investors from India and South Korea. The funding will support the expansion of the company’s NBFC arm, True Credits Pvt Ltd, which focuses on providing digital loans to underserved users in India.

Key Highlights

• Fintech platform True Balance raises $10 million debt funding to expand NBFC lending arm True Credits.
• Funds will support digital lending growth targeting underserved and new-to-credit customers across India.

The fresh capital will be used to scale True Credits’ lending operations and launch new loan products in India, particularly targeting users with little or no credit history. The Gurugram- and Seoul-headquartered fintech startup said the funding will also help its lending arm move toward profitability and achieve operational break-even.

According to Vishal Bhatia, CFO of True Balance, “This round of funding will be fortifying the collective effort by startups such as us and the government to make India a stronger economy as we move forward towards growth.”

The company also expects additional funding of around $40 million in the same financial year to further scale its lending business.

True Balance has been expanding its digital lending portfolio aggressively. Through its NBFC subsidiary True Credits, the platform has already disbursed over $30 million in loans during the current financial year.

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The company mainly targets underbanked and “new-to-credit” consumers who are typically underserved by traditional banks.

Customers within the monthly income range of ₹10,000 to ₹45,000 can access small-ticket loans via the app, usually ranging from ₹5,000 to ₹50,000.

To evaluate borrowers who lack formal credit histories, True Balance uses an alternative credit scoring system combined with machine-learning-based underwriting models. This allows the platform to assess risk and extend credit to first-time borrowers who would otherwise struggle to obtain loans from banks.

Founded in 2014 by Charlie Lee, True Balance is operated in India by Balancehero India, a subsidiary of South Korea-based Balancehero. The fintech platform offers a range of services including bill payments, mobile recharge, and digital lending.

Prior to this debt round, the company had raised $28 million in equity funding from investors such as SoftBank Ventures Asia, Line Ventures Corporation, and Daesung Private Equity.

Commenting on the company’s mission, Victor Choi, CEO of True Balance, said: “Our focus is to be a company that enables ‘finance for all’, especially those uncredited users on our platform.”