BSE SME-Listed Veefin Raises INR 136 Cr Fresh Funding

SUMMARY

Veefin Solutions said it has bagged INR 136 Cr (around $16 Mn) from undisclosed capital market investors

The fintech company said it will utilise the fresh capital to scale its products, drive growth and expand its footprint

The company added that it plans to raise another $18 Mn in a separate round in the ongoing financial year

BSE SME-listed fintech company Veefin Solutions said it has bagged INR 136 Cr (around $16 Mn) from undisclosed capital market investors.

In a release, Veefin said it will utilise the fresh capital to scale its products, drive growth and expand its footprint.

The company added that it plans to raise another $18 Mn in a separate round in the ongoing financial year. “This round will be a catalyst to fast-track the growth of Veefin’s innovative product portfolio, positioning the company as the working capital technology platform of choice and a trusted partner for clients,” it said.

The development comes at a time when Veefin has been on an acquisition spree for the better part of the year. Since June, the company has picked up stakes in Singapore-based Walnut AI, fintech service provider EpikInDiFi, Nityo Tech and Regime Tax Solutions.

Veefin also plans to utilise a part of the fresh capital for faster business expansion of the acquired companies.

The company said that the latest funding round saw participation from its “long-standing investors who have been integral to the company’s growth since its inception”.

While it did not disclose the name of the investors, sources told Inc42 that it was a private placement round.

It is pertinent to mention that as per SEBI LODR regulations, 2015, listed companies need to give prior intimation to the stock exchange about the meeting of the board of directors to consider and approve fund raising by way of further public offer, rights issue, qualified institutions placement, debt issue, preferential issue or any other method, et al.

Founded in 2020 by Raja Debnath and Gautam Udani, Veefin offers supply chain finance and lending solutions to banks and NBFCs. It claims to have a clientele exceeding 500, including names like DBS Bank, IBM, Jio Finance Limited, Exonn Mobil, Yes Bank, Kafalah, PSB Alliance, Riyad Bank, among others.

The company got listed on the BSE SME on July 5, 2023 at INR 82 per share. Since listing, shares of Veefin have risen over 7X. The stock ended today’s trading session 1.51% higher at INR 704.85.