Fintech NBFC Vivifi raises $75 Mn in Series B round

Vivifi India Finance, a Hyderabad-based fintech NBFC, has raised $75 million in a Series B funding round in a combination of debt and equity.

While Vivifi did not disclose the name of its investors, the company’s regulatory filings show that it raised funds from BP IN VPF LLC. As per sources, the firm will be valued at around $150 million.

Vivifi raised $6 million in Series A during FY21 from family and own funds.

The fresh capital raised will play a pivotal role in driving forward Vivifi's mission to revolutionize financial inclusion through technology-driven credit solutions, the company said in a press release. The fundraise will further support the extension of financial services for under-served communities through its products, FlexPay and FlexSalary. 

Launched in 2016, Vivifi offers sachet size loans targeting underserved communities. It claims to have disbursed over Rs 1,000 crore worth of loans to more than 5,00,000 customers in the past year. As per the company, a significant majority of these beneficiaries earn less than Rs 30,000 per month and are borrowing from tier II and III cities across India.

Notably, Vivifi has been profitable since its inception. In FY23, the company reported a revenue of Rs 166 crore, with a profit after tax (PAT) of Rs 16 crore. It expects to nearly double its revenues this year while aiming to disburse over Rs 3,000 crore.

Vivifi co-founder Anil Pinapala added that the firm will expand its customer base to a million users in the next 12-18 months and the infusion is timely as regulatory demands for enhanced capital adequacies in the unsecured lending sector intensify.

Vivifi also aims to expand its workforce to over 2,000 employees in the next 12-18 months from its existing strength of 800. It also has plans to establish multiple offices across tier-II and tier-III cities in Telangana and Andhra Pradesh initially.