TFCI Expands Horizons: Diversifies Into Retail Lending and Investment Fund

Tourism Finance Corporation of India (TFCI) announces its strategic move into retail lending using FinTech platforms and plans to establish an Alternative Investment Fund. TFCI raised Rs 50.02 crore in Q1 FY25 for this diversification, aiming to tap into household and micro-small enterprise market segments.

Tourism Finance Corporation of India (TFCI), a prominent non-banking finance company, has unveiled its foray into retail lending via FinTech platforms. This strategic diversification aims to tap into the vast credit market for households and micro-small enterprises, especially targeting the tech-savvy younger generation favoring quick, digital loan approvals.

In conjunction with this move, TFCI plans to establish an Alternative Investment Fund. According to the company, these initiatives will significantly bolster their balance sheet and facilitate substantial growth. A recent capital raise of Rs 50.02 crore through a preferential equity issue at Rs 225 per share, with a capital adequacy ratio of 58%, provides ample headroom for aggressive expansion.

Anoop Bali, Managing Director of TFCI, emphasized the strategic alignment with their long-term growth plans, particularly in sectors such as tourism, hospitality, healthcare, education, green energy, warehousing, logistics, manufacturing, and real estate. This diversification marks a significant phase in TFCI's growth trajectory.

(With inputs from agencies.)