Fibe's IPO papers flag reliance on unsecured, repeat lending
Bengaluru, June 30 -- Mumbai-based Fibe filed for an initial public offering on Tuesday, combining a fresh issue of up to Rs.750 crore with an offer for sale of more than 40 million shares by existing investors.
Fibe is a digital consumer lender that uses its app and partner channels to offer mostly unsecured personal loans and other credit products to salaried, middle-income customers.
The draft red herring prospectus (DRHP) noted that the company depends heavily on unsecured personal loans, repeat borrowing from existing customers, and its material subsidiary - EarlySalary Services Pvt. Ltd, which does the actual lending and carries all borrowings on the balance sheet.
The DRHP also shows large default loss guarantee payouts, signall...
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