Lendingtech Startup Indifi Secures $35 Mn Funding From ICICI Venture, Others

SUMMARY

The round saw participation from existing investors including British International Investment, OP Finnfund Global Impact Fund I, Omidyar Network India, Flourish Ventures and CX Partners

The Gurugram-based startup will use the fresh capital to propel its growth through expansion

It will also focus on developing new products to serve more the underserved segments of the MSME sector

Lendingtech startup Indifi Technologies has raised INR 290 Cr ($35 Mn) in its Series E funding round led by funds managed and advised by ICICI Venture.

The round saw participation from existing investors including British International Investment, OP Finnfund Global Impact Fund I, Omidyar Network India, Flourish Ventures and CX Partners.

The Gurugram-based startup will use the fresh capital to achieve growth through expansion and increasing market presence. It will also focus on developing new products to serve more the underserved segments of the MSME sector.

“This investment not only fuels our journey but also showcases the trust and endorsement of leading investors in the ecosystem. As an organisation, our commitment has been unwavering when it comes to marrying technology with ground-level understanding to create positive outcomes for MSMEs across India,” Alok Mittal, MD and CEO of Indifi Technologies said.

Founded in 2015 by Alok Mittal, Siddharth Manhot and Sudeep Sahi, Indifi offers credit solutions to underserved businesses. It claims to have disbursed more than 73,000 loans across 400+ cities, amounting to a total disbursement value of over INR 4100 Cr.

Earlier, it raised INR 340 Cr (around $45 Mn) in a mix of equity and debt financing in its Series D funding round in November 2021. Till date, the startup has raised $81.5 Mn funding.

In the financial year 2021-22 (FY22), the startup reported a consolidated loss of INR 32.8 Cr versus INR 36.7 Cr a year ago. Its operating revenue increased 66% YoY to INR 96.3 Cr from INR 57.9 Cr in FY21.

Last year, Indifi made a strategic investment in software-as-a-service (SaaS) provider BizeeBuy.

The fundraising comes at a time when the total funding raised by the country’s startups grew 15% month-on-month (MoM) to $1 Bn in May 2023 after a steady decline for a few months. Indian startups had raised $900 Mn in the month of April.

Fintech was the third largest sector in raising funds after enterprise tech and ecommerce, clinching nine deals worth $144 Mn in May. Per Inc42 data, the overall deal count also surged 31% to 80 in May 2023 from 61 in April 2023.