Gurugram-based Indifi Technologies, which lends to small businesses, said on Tuesday that it has raised $35 million in a Series E funding round led by funds managed and advised by ICICI Venture.
Existing investors including British International Investment (BII), OP Finnfund Global Impact Fund I, Omidyar Network India, Flourish Ventures, and CX Partners also participated in the round.
Founded in 2015 by Alok Mittal & Siddharth Mahanot, Indifi operates an online lending platform that offers business loans to micro, small and medium enterprises (MSMEs) that have limited access to credit from financial institutions. The company also claims to offer tailored loans for travel, hotel, e-commerce, restaurant, trading, and retail businesses.
The company said it will use the funds to develop new products and expand its current operations.
The latest funding round comes nearly 19 months after the company closed a $46 million Series D round, which was a mix of debt and equity.
The latest round brings Indifi’s total equity fundraising to date at Rs 640 crore ($77 million). Other investors in the company include the UK’s development finance institution CDC Group, Elevar Equity, and Accel.
The company claims to have disbursed over 73,000 loans across over 400 cities, amounting to a total disbursement value of over Rs 4,100 crore. It turned profitable in Feb 2022 and has been in the black since. Last month, Indifi announced that its Assets Under Management (AUM) doubled from the previous year to over Rs 1500 crore.
“Indifi has created a best-in-class digital technology platform for lending to the MSME sector, enabling access to credit for this highly underserved segment of the Indian economy. Indifi’s strong relationships with ecosystem partners and liability partners stand in good stead as it targets a rapid scale up,” said Nikhil Mohta, Senior Director, Private Equity, ICICI Venture.
ICICI Venture is the alternative investment arm of ICICI Bank. In November 2022, it invested $44 million in the consumer houseware company Cello World, its first investment from its fifth private equity fund that raised $325 million within a few months of its launch.
Set up in 1988, ICICI Venture also manages four other PE funds—India Advantage Fund (IAF) Series 1, 2,3 and 4. IAF-4 was closed at $250 million (around ₹1,900 crore) in September 2017. It has also backed AC manufacturer EPACK Durable, Go Fashions India, and Theobroma Foods, among other startups.