Finbud Financial Services (Finance Buddha) was originally incorporated as a private limited company under the Companies Act, 1956 in the name and style of ‘Finbud Financial Services Private Limited’ on July 09, 2012. Subsequently, the name of the company was changed to ‘Finbud Financial Services Limited’ and a fresh Certificate of Incorporation dated September 23, 2024, was issued by the Registrar of Companies, Karnataka.

The company, founded in 2012 and promoted by Vivek Bhatia, Parag Agarwal, and Parth Pande, is one of India’s leading retail loan aggregation platforms. Initially started in Bangalore, the company has expanded its operations across the country, covering Multiple postal areas. It serves as a bridge between customers and lenders by offering a variety of loan products, including personal loans, business loans, and home loans, through partnerships with wide network of banks and non-banking financial companies (NBFCs).

It operates with a hybrid customer acquisition strategy that integrates both digital channel and a wide network of external agents i.e., agent channel. This allows the company to reach a broad range of prospective borrowers. Once a customer expresses intent, the platform uses its matchmaking technology to compare loan offers from multiple lenders, advising customers on the most suitable options. The company guides them through the entire loan application process, ensuring a seamless experience until the loan is disbursed. While Finance Buddha doesn’t take any credit risk (as the decision to approve or reject a loan rest with the lender), it earns a commission from lenders when a loan is successfully disbursed.

A key differentiator for the company is its unique hybrid business model, which combines conventional lending with digital lending. This model allows the company to offer a broad range of loan solutions to different customer segments. The Agent model, which relies on a wide network of agents, enables the company to access a curated audience of customers, often with preliminary checks already completed, leading to higher conversion rates. The digital model aspect, powered by the company’s proprietary tech platform, enables the processing and enrichment of customer data using both internal and third-party variables, which is then leveraged for future cross-selling and up-selling opportunities.

This hybrid approach offers a significant advantage over competitors. While many of its peers focus exclusively on either agent or digital models, it’s combination of both allows for better customer lifecycle management and more optimized margins. The Agent model focuses on acquiring a large number of customers with lower profits per loan, while the digital model targets fewer customers but with higher profitability. This balanced strategy allows it to grow and remain profitable in the long term, even as it navigates the competitive loan distribution market in India.

Business area of the company

It operates as a financial platform that specializes in connecting borrowers with lenders, utilizing a hybrid model that combines online via a digital channel and traditional methods via agent channel. It employs a commission-based revenue model, deriving income from each successful loan disbursement conducted by its Lending Partners. It offers a range of financial products, including personal loans, home loans, and credit lines to consumers, as well as business loans and working capital loans targeted at small to medium-sized enterprises. Each borrower is matched with a suitable lender to ensure that their specific financial needs are met, providing them with flexible terms and competitive rates.

Products of the company 

• Personal Loan
• Business Loan
• Home Loan
• Others

Awards and accreditations

• 2018-19: Awarded as 'Best Channel Outstanding Support in H1 FY2018-19' from Kotak Mahindra Bank 
• 2018-19: Recognition as a 'Valued Channel Partner' from HDFC Bank 
• 2020-21: Awarded as 'Third Highest Contribution of Personal Loan in Karnataka and Kerala' in 2020-21 from Axis Finance 
• 2020-21: Certificate of Appreciation from ICICI Bank (Personal Loans) 
• 2021-22: Awarded as 'Top Partner' for performance from Bajaj Finserv 
• 2021-22: Appreciation award for outstanding contribution during FY21-22 from IDFC First Bank 
• 2023-24: Awarded the 'Pegasus Excellence Award - Personal Loan' for FY 2023-24 from Tata Capital

History and millstones

• 2012: Incorporation of Company 
• 2015: Company goes multi geography with the setting up office in Delhi 
• 2016: Equity Investment by The Chennai Angels (TCA) consortium into the Company 
• 2018: Company sets up 100% subsidiary - LTCV Credit Private Limited 
• 2020: Company crosses Rs 50 crore of topline 
• 2021: Company successfully navigates the impact of COVID on operations. However turnover drops below Rs 50 crore 
• 2022: Significant investment into digital teams by setting up new teams 
• 2023: Company crosses Rs 100 crores of topline 
• 2024: Company crosses Rs 150 crores of topline 
• 2025: Company crosses Rs 200 crores of topline 
• 2025: LTCV became Material Subsidiary