Digital lending startups, seeking to rein in costs, are increasingly diversifying their borrowing channels by tapping the public bond markets.
Industry insiders told ET that the rise of OBPPs (Online Bond Platform Provider) and higher retail participation in these platforms are making these new-age companies explore NCDs (Non-convertible debenture) as a fundraising tool.
These market-linked instruments significantly reduce their borrowing costs vis-à-vis funding from non-bank lenders – hitherto the primary financing source for fintechs.
“A third of…
