Alok Mittal Led Indifi Reports INR 5.1 Cr Profit In FY23

Lendingtech startup Indifi Technologies turned profitable in the financial year ended March 31, 2023 on the back of a strong growth in business. It reported a net profit of INR 5.1 Cr in the financial year 2022-23 (FY23) as compared to a loss of INR 32.8 Cr in FY21. 

Revenue from operations jumped over 2X to INR 197.9 Cr in FY23 from INR 96.29 Cr in the previous fiscal year. 

The startup provides unsecured term loans and line of credits to micro, small and medium enterprises (MSMEs) for short-term business requirements and earns most of its revenue through processing fees and service fees. 

Indifi’s total revenue, including other income, stood at INR 213 Cr in FY23 as compared to INR 105.8 Cr in FY22. 

On the expenses front, total expenditure stood at INR 202.8 Cr in FY23, an increase of 1.4X from INR 138.4 Cr in the previous fiscal year. 

Interest expense on borrowings was one of the biggest contributors to the startup’s total expense. In FY23, the startup spent INR 65.7 Cr on it, a jump of 81% from INR 36.3 Cr in the previous fiscal year. 

Employee benefit expenses rose 27% to INR 55.7 Cr from INR 43.9 Cr in FY22. Employee benefit expenses mostly comprise employee salaries, PF contributions, and other employee welfare benefits. 

Indifi wrote-off bad-debt worth INR 20.8 Cr in FY23, a decline of 37% from INR 33.1 Cr in FY22. 

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 4,100 Cr till date.

Amid the ongoing funding winter, the startup raised $35 Mn in its Series E funding round, led by ICICI Venture, in June this year. The funding round also saw participation from existing investors, including British International Investment, OP Finnfund Global Impact Fund I, Omidyar Network India, Flourish Ventures and CX Partners.

Indifi competes against the likes of Incred, Yubi, Lendingkart, among others.

With rising digitisation, the lendingtech sector has emerged as an important subsector within the fintech sector. A number of startups are providing credit to businesses, especially MSMEs which are starved of capital. As per Inc42’s ‘State Of The Indian Fintech Report Q2 2023’ report, lendintech sector which had a market size of $270 Bn in 2022 is poised to grow at 22% CAGR to reach $1.3 Tn by 2030. 

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