Indifi raises 340 Cr INR ($ 45 million) in equity and debt financing

ByRichard C. Sloan

Nov 24, 2021

The INR 140 Cr D-Series funding round was led by CX Partners and OP Finnfund, with participation from CDC Group, Omidyar Network, Flourish Ventures, Elevar Equity and Accel

He further secured debt financing of 200 Cr INR from Vivriti, Northern Arc, SIDBI, among others, of which 35 Cr INR is a guaranteed note from the US International Development Finance Corporation.

The startup plans to use the funds to expand its consumer base, product offerings within MSMEs, and technology development

Gurugram-based B2B online lender Indifi has raised 340 Cr INR (approximately $ 45 million) in a mix of equity and debt financing.

CX Partners and OP Finnfund Global Impact Fund I, along with existing investors CDC Group, Omidyar Network, Flourish Ventures, Elevar Equity and Accel have invested 140 Cr INR (approximately $ 19 million) in the ongoing Series D cycle of the startup.

The current round, which could see participation from other global funds, brings Indifi’s total equity raised to date to INR 350 Cr. The turn comes after Inc42is exclusive report on Indifi raiding INR 53 Cr in the equity cycle of the D1 series.

In the current round, Indifi has also secured 165 Cr INR of debt financing from Vivriti, Northern Arc, SIDBI, among others, while the US International Development Finance Corporation has guaranteed 35 Cr INR to Indifi.

The startup plans to use the funds to expand its consumer base, product offerings within MSMEs, and technology development.

Founded in 2016 by Alok Mittal, Siddharth Manhot and Sudeep Sahi, Indifi offers term loan, line of credit, bill discount and cash advance services to merchants. Loans can be customized for the company’s cases, and its current customer base is split between travel, e-commerce, retail, restaurants, and hotels. Some big names include Flipkart, Swiggy, Zomato, Amazon, Yatra, SpiceJet, among others.

The startup claims to have disbursed more than 35,000 loans, served 200 clients in more than 12 sectors.

Still, the startup’s revenues have plummeted, while losses have increased. In fiscal year 21, Indifi declared a turnover of 11.3 Cr INR, compared to 23 Cr INR in fiscal year 20. During the same period, its EBITDA loss was raised to INR 36 Cr, against INR 32 Cr during FY20.

The Indian fintech market is currently one of the fastest growing compared to the rest of the world. Despite the first two waves of the Covid-19 pandemic which wreaked havoc across most sectors, the innovations and investors supporting the fintech space have helped India maintain its lead. Overall, the country has the highest fintech adoption rate at 87% against a world average of 64%.

According to Inc42 Plus estimates, the fintech startup ecosystem saw a 5.8x influx of capital to reach Funding of 4.6 billion dollars on 160 transactions over the period January-August 2021, while lending technology has secured more than $ 860 million, trailing behind digital payments startups. A BCG report also predicts that the digital lending industry will hit $ 1 billion by 2023.

B2B online lenders including OfBusiness, CredAvenue, LendingKart, Capital Float, SMEcorner, ZipLoan, among others, are competing for the big market.


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