Indifi Technologies, an Indian startup that provides digital lending to small and medium-sized enterprises, has raised $35 million in a new funding round that was spearheaded by ICICI Venture, the investment arm of ICICI Bank.
Existing investors British International Investment, OP Finnfund Global Impact Fund I, Omidyar Network India, Flourish Ventures, and CX Partners joined the all-equity Series E investment for the eight-year-old firm.
India has 63 million micro, small, and medium-sized businesses. These businesses support the country’s economy by making up over 30% of its gross domestic product and employing more than 113 million people. These companies continue to face a major challenge—access to capital — despite playing a critical role in the economy. In its report from December 2018, the Reserve Bank of India‘s Expert Committee shed light on this issue by projecting an alarming credit gap for the MSME sector that ranges from $243 billion to $303 billion (20–25 lakh crore Indian rupees).
Indifi, a company founded in 2015 by Alok Mittal and Siddharth Mahanot, aims to close this gap by providing several loan types to companies whose annual revenue ranges from $36,400 to $1.21 million. The startup’s online lending marketplace makes it simple for companies in a range of industries, including travel, e-commerce, hotels, and retail, to easily obtain unsecured loans customized to their specific requirements.
Over 73,000 loans totaling more than $497 million have been given by the Gurugram-based business across 400 cities. Its assets under management increased by nearly 100% from the prior year to $182 million in March.
About 30% of Indifi’s clients have been in operation for under two years, which is normally below the threshold for banks to offer loans. Additionally, women entrepreneurs, who frequently have trouble acquiring loans through traditional channels, make up more than 20% of Indifi’s consumers.
Without providing particular data, Mittal claimed that Indifi increased in value and volume of loans disbursed by 150% and 100%, respectively, over the previous 12 months. Since February 2022, the firm has turned a profit for six straight quarters, and its profitability figures are rising, he claimed.
Indifi Technologies has made progress in the last six months by beginning to provide quick loans and providing working capital financing for direct-to-consumer brands and software companies. According to Mittal, the business intends to use the additional funding to continue exploring new market niches.
In total, Indifi has raised over 81 million dollars, including the most recent investment and the $45 million Series D round that was disclosed in November 2021. About 700 individuals work for the startup in operational areas like customer support and customer help, as well as product analytics, technology, and business development.
