2020 and 2021 have been opposites – while the previous year adversely impacted several industries, this year has been beneficial for the startup ecosystem in India. Not only have numerous startups raised record capital from investors (both domestic and global), but dozens of startups have attained the coveted unicorn status.
The fintech sector has been one of the sectors that have clocked the most growth. This time, digital financial services company Indifi Technologies raised ₹340 crores in a mix of equity and debt as part of its Series D round.
The funding round consists of an equity funding of ₹140 crores from investors CX Partners and OP Finnfund Global Fund I, and ₹200 crores in debt financing from Vivriti, Northern Arc, SIDBI, the United States International Development Finance Corporation, and others. The company has raised ₹350 crores in total equity financing to date.
According to the company, which is already in talks with global funds to raise more capital and extent its Series D round, the proceeds will be used to serve more customers, identify additional segments of MSMEs, and for technology and product development.
The problems of credit, proper funding, and access to financial institutions continue to persist even as the government is working towards a digital India. Most of the MSMEs operating in the world’s second-largest internet market (63 million in total) lack access to funding and efficiently manage and meet working capital needs. This is where Indifi comes in with its online lending platform, offering tailored business loans to MSMEs across sectors such as travel, hotel, e-commerce, restaurant, trading, and retail businesses.
The startup works with more than 100 data partners and a few top financial institutions, thereby providing easily accessible loans digitally and helping businesses grow. “Our recent collaboration with Facebook digitally enables MSME players to avail small ticket-sized loans to grow their businesses,” said Alok Mittal, CEO, and co-founder, Indifi.
“The company is filling a critical gap in the Indian lending landscape by providing loans to small merchants and businesses using technology to bypass constraints of traditional MSME lending through reliance on data and integration with anchor digital ecosystems and financial institutions, said Manu Sahni, managing director, CX Partners.