Infinity Fincorp Pockets $35 Mn To Fuel Its MSME Lending Play

SUMMARY

Infinity Fincorp Solutions has raised $35 Mn (around INR 300 Cr) in Series A round of funding led by existing investor Jungle Ventures, with additional participation from Archerman Capital and Magnifico

With the new round of funding, Infinity’s net worth has risen to INR 530 Cr

Last year, Infinity raised $34 Mn to ramp up its credit accessibility to MSME businesses in Tier III and IV cities and towns across India

Mumbai-based non-banking financial company (NBFC) Infinity Fincorp Solutions has raised $35 Mn (around INR 300 Cr) in Series A funding round, led by existing investor Jungle Ventures to boost its micro, small and medium enterprises (MSMEs) lending outreach.

The funding also saw participation from two other existing investors Archerman Capital and Magnifico.

“We are extremely grateful to all our investors who are supporting us in our mission to serve the vastly underserved MSME sector. This fundraise significantly bolsters our capital position with Infinity’s net worth at INR 530 Cr and capital adequacy at 62% as against a regulatory requirement of 15%,” said Shrikant Ravalkar, founder, managing director and CEO of Infinity.

“We remain committed to serving the vast untapped MSME landscape of India with our in-house capabilities to serve the Indian MSMEs and access to growth capital from our marquee investors, we will deepen our footprint and accelerate our mission of extending credit to MSMEs across the country,” he added.

Founded in 2016 by Ravalkar, Infinity offers tailored property loans designed specifically for the MSME segment in India. Currently, it operates a total of 120 branches across eight states in India.

The company claims that it has reported a profit of INR 26 Cr in FY24. Furthermore, Infinity projects its profit to reach INR 47 Cr in the upcoming financial year.

This development comes at a time when the central government has been engaged in facilitating term loans to MSMEs via a credit guarantee scheme introduced by the finance minister.

This has also benefitted MSME lending players to expand their loan offerings and gained the likes of investors on the back of expansion plans.

Last year, the NBFC raised $34 Mn (around INR 283 Cr) from various investors to ramp up its credit accessibility to micro-entrepreneurs and small businesses in Tier III and IV cities and towns across India.

Meanwhile, Mumbai-based lending company SarvaGram secured INR 565 Cr (around $67 Mn) as a part of its Series D fundraise led by Peak XV Partners, in November.

Updated at 03:21 PM, with details of the funding round.