Indifi loan market raises Rs 340 Cr in equity and debt roundtable

Indifi, which operates an online lending platform that offers third-party loans to micro, small and medium-sized businesses, has raised Rs 340 crore, or nearly $ 47 million, in a mixed round of equity and debt led by CX Partners and OP Finnfund Global Impact Fund JE.

Existing investors CDC Group, Omidyar Network, Flourish Ventures, Elevar Equity and Accel Partners also invested in the round.

According to Indifi, the Series D round constitutes Rs 140 crore in equity and Rs 200 crore in debt of Vivriti, Northern Arc, SIDBI, US DFC and others. The new funds will be used to expand reach, technology infrastructure and product development, among others, Indifi said in a press release.

The new round for the Gurugram-based company came after a 28-month hiatus. The CDC Group had carried out a $ 21 Million Series C Round in the Gurugram-based company in July 2019. To date, the company has raised around $ 50 million in equity.

Indifi offers loans to small businesses in the travel, hospitality, e-commerce, catering, trade and retail sectors that have limited access to credit from financial institutions.

According to the company run by Alok Mittal, it aims to dramatically improve borrowers’ experience of accessing credit as well as the speed and convenience of the lending process.

Although Indifi did not share any financial figures, Fintracker has sifted through its regulatory documents which show the company’s operating income only increased 6% to Rs. 57.89 core in FY21 from Rs 54.61 crore in FY20. It should be noted that the demand for loans among SMEs had increased significantly over the past fiscal year due to the pandemic.

It is not known why Indifi’s operating revenues did not increase significantly in FY21.

During the period ending March 2021, the company’s total expenses increased by 9% to reach Rs 102 crore, compared to Rs 93.33 crore in the previous fiscal year. The company recorded a loss of Rs 36.68 crore in FY21 compared to Rs 32.20 crore in FY20.

Capital Float, InCred, Aye Finance and Lendingkart are Indifi’s direct competitors.

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