Indifi, which operates an online lending platform that offers micro, small and medium-sized businesses third party loans, raised Rs.340 billion, or nearly US $ 47 million, in a mixed round of equity and debt led by CX Partners and OP Finnfund Global Impact Dollar raised Fund I.
Existing investors CDC Group, Omidyar Network, Flourish Ventures, Elevar Equity and Accel Partners have also invested in the equity round.
According to Indifi, the Series D round includes Rs.140 billion in equity and Rs 200 billion in debt from Vivriti, Northern Arc, SIDBI, US DFC, and others. The fresh funds will be used, among other things, for expanding the range, the technical infrastructure and product development, said Indifi in a press release.
After a break of 28 months, the new round has come for the Gurugram-based company. CDC Group had one $ 21 million Series C round in July 2019 at the company based in Gurugram. To date, the company has raised around $ 50 million in equity.
Indifi offers small business loans in the travel, hotel, e-commerce, restaurant, commerce and retail sectors that have limited access to financial institution loans.
According to the company run by Alok Mittal, it aims to greatly improve the experience for borrowers in terms of access to credit, as well as the speed and convenience of the credit process.
While Indifi didn’t share financial numbers, Trickypedia reviewed its regulatory filings, showing the company’s operating income only increased 6% to Rs. 57.89 core in FY21 from Rs 54.61 crore in FY20. It is worth noting that the demand for credit among SMEs increased significantly in the past fiscal year due to the pandemic.
It is not clear why Indifi’s operating income did not increase significantly in FY21.
In the period through March 2021, the company’s total spending increased 9% to Rs 102 billion from Rs 93.33 billion in the previous fiscal year. The company posted a loss of Rs 36.68 billion in FY21 compared to Rs 32.20 billion in FY20.
Capital Float, InCred, Aye Finance and Lendingkart are Indifi’s direct competitors.