Lending marketplace Indifi raises Rs 340 Cr in equity and debt round

Indifi, which operates an online lending platform that offers third-party loans to micro, small and medium enterprises, has raised Rs 340 crore or close to $47 million in a mixed round of equity and debt led by CX Partners and OP Finnfund Global Impact 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 constitutes Rs 140 crore in equity and Rs 200 crore in debt from Vivriti, Northern Arc, SIDBI, U.S. DFC and others. The fresh funds will be used for expanding reach, tech infrastructure and product development among others, said Indifi in a press release.

The new round for the Gurugram-based company has come after a gap of 28 months. CDC Group had led a $21 million Series C round in the Gurugram-based firm in July 2019. As of now, the company has raised around $50 million in equity.

Indifi offers loans for small businesses across travel, hotel, e-commerce, restaurant, trading, and retail sectors which have limited access to credit from financial institutions. 

According to the Alok Mittal-led company, it aims to substantially improve the experience for borrowers regarding credit access as well as the speed and convenience of the loan process. 

While Indifi did not share any financial numbers, Fintrackr has sifted through its regulatory filings which shows that the company’s operating revenue merely grew by 6% to Rs. 57.89 core in FY21 from Rs 54.61 crore in FY20. It’s worth noting that the demand for loans among SMEs had gone up substantially in the last fiscal due to the pandemic. 

It’s not clear why Indifi’s operating revenue didn’t grow significantly during FY21.

During the period ending March 2021, the company’s total expenses rose by 9% to Rs 102 crore from Rs 93.33 crore in the preceding fiscal year. The company booked a loss of Rs 36.68 crore in FY21 as compared to Rs 32.20 crore in FY20.

Capital Float, InCred, Aye Finance and Lendingkart are the direct competitors of Indifi.