Infinity Fincorp Nets Additional $8 Mn To Boost Credit Accessibility For Micro Entrepreneurs

Mumbai-based Infinity Fincorp Solutions, a non-banking financial company, has secured an additional $8 Mn (around INR 66.7 Cr) funding from Archerman Capital.

The round is an extension to Infinity’s $26 Mn funding round led by Jungle Ventures, with participation from Magnifico, last month.

The new investment brings the total amount raised in this round to $34 Mn (around INR 283 Cr) and total assets under management (AUM) to INR 800 Cr (around $100 Mn). 

The NBFC plans to use the fresh funds to ramp up its credit accessibility to micro-entrepreneurs and small businesses in Tier III and IV cities and towns across India. 

Shrikant Ravalkar, founder, managing director and CEO of Infinity, said, “The current equity fundraise, whereby we were able to attract global VC funds stands as a testament to Infinity’s strategic focus and its peerless execution capabilities. We will deepen our footprint and accelerate our mission of extending credit to MSMEs across the country.”

“ The MSME sector stands as a cornerstone of India’s growth narrative, and with Infinity’s execution excellence, they are well positioned to seize this significant opportunity,” said Darshit Vora, partner at Archerman Capital.

Nitin Nayak, nominee of Indium IV on Infinity’s board, said, “The management team at Infinity has deep understanding of the affordable lending sector in semi urban India and has built a strong business model to leverage the same, while delivering healthy profitability. We extend our sincere thanks and a warm welcome to our new investors in this journey.”

Founded by Ravalkar in 2016, Infinity offers tailored property loans designed specifically for the MSME segment in India. Currently, it operates a total of 88 branches across eight states in India.

The company claimed that its total loan book stands at INR 800 Cr (USD 100M) across 20,000+ customers as of March 2024, and it aims to grow to INR 1,300 Cr (USD 160M) by March 2025. 

As per the IBEF report, the MSME segment comprises approx 6.3 Cr businesses, has been a key driver of economic growth and contributes around 6.11% of the manufacturing GDP and 24.63% of the GDP from service activities.

The funding round comes at a time when the Reserve Bank of India (RBI) has tightened its checks on the mushrooming digital lending ecosystem in the country. 

However , the digital lending space continues to be an attractive proposition for both entrepreneurs and investors alike. 

For instance, last month RupeeRedee’s NBFC arm FincFriends raised $7.8 Mn, in a mix of debt and equity, in a strategic round led by InCred Finance and Grow Money Capital.

In March the alternative credit platform BlackSoil NBFC raised equity of INR 100 Cr from its existing Indian investors and family offices through a rights issue.

Inc42’s analysis forecasts the domestic fintech market to reach a market size of $2.1 Tn by 2030, with a projected 18% CAGR from 2022. Within this, lending tech is anticipated to dominate, constituting the majority at $1.3 Tn.