[Update] Bessemer-Backed Rupifi To Raise $2 Mn Via Rights Issue

SUMMARY

Rupifi is raising the funding from existing investors, including Bessemer Venture Partners, Ankur Capital and Quona Capital

Cofounder Anubhav Jain said that the startup would “take time to build heads down” before going for a larger funding round

Rupifi is a B2B transaction and payment platform which helps businesses with financial solutions, including payment collection, reconciliation, taxation and accounting

B2B fintech startup Rupifi is raising $2 Mn (around INR 17.45 Cr) in a bridge round from existing investors, including Bessemer Venture Partners, Ankur Capital and Quona Capital.

In a regulatory filing, the startup said that its board approved the proposal to issue 66,427 pre-Series B3 compulsorily convertible preference shares (CCPS) at a face value of INR 1.82 Lakh each to raise the sum from existing shareholders. This translates to a total of INR 1,1215 Cr.

However, Rupifi founder Anubhav Jain told Inc42 that the startup is raising just $2 Mn. “The size of the rights issue is large due to pro-rata share issuance. This is a small internal round and we would take time to build heads down before any large capital raise.”

The development was first reported by Entrackr. Jain told the publication that the startup will dispose of the remaining unsubscribed portion of INR 1,213 Cr.

Founded by Jain and Jawaid Iqbal in 2020, Rupifi is a B2B transaction and payment platform which helps businesses with financial solutions, including payment collection, reconciliation, taxation and accounting. The startup claims to serve in more than 800 cities with over 2.5 Mn transactions.

In 2022, it raised $25 Mn in its Series A funding round led by Bessemer and Tiger Global. In the same year, Rupifi also raised $8 Mn debt from Alteria Capital, Trifecta Capital, and Innoven Capital.

The development comes at a time when fintech startups continue to attract investors’ interest on the back of rapid growth of the sector.

For instance, Ambak recently raised $7 Mn in a funding round combining seed and pre-Series A infusions to expand operations to 35 cities. Last year, M2P fintech raised INR 850 Cr ($101 Mn) through a combination of primary and secondary deal in its Series D funding round.

At the heart of this funding spree is India’s fintech market, which is expected to reach a size of $2.1 Tn by 2030. The country is currently home to more than 790 fintech startups.

Editor’s Note: The earlier version of the story said that Rupifi is looking to raise INR 1,125 Cr. The copy and the headline have been edited to change this number to $2 Mn based on clarification from cofounder Anubhav Jain. The cofounder’s statement has also been added to the copy.