Updated: Rupifi to raise funds via right issue

B2B payments platform Rupifi is raising funds from existing investors, including Bessemer, Quona Capital, and Ankur Capital.

The board at Rupifi has passed a special resolution to issue 66,427 compulsory convertible preference shares at an issue price of Rs 1,82,818 each to raise Rs 1,215 crore ($146 million), its regulatory filing accessed from the Registrar of Companies shows.

However, the company’s founder Anubhav Jain said that the firm has structured the round size for 66,427 CCPS in order to allow investors to subscribe up to the investment amount ($2 million).

“We are glad to report a $2M raise by existing investors. We have done a rights issue for the same. As per Section 62 of the Companies Act 2013, a right issue can be offered to the equity shareholders of the company in their proportionate shareholding to the paid-up capital on those shares,” said Jain.

He added that the Board of Directors of the Company will dispose of the remaining unsubscribed portion ($144 million out of $146 million). “We also have participation from Quona Capital and Ankur Capital in this bridge round. With break-even coming up in the coming quarter, we plan to use this bridge to take the Company to its next milestone of sustainable growth,” added Jain.

The filings indicate that existing investors are expected to participate in the round. Rupifi plans to utilize the funds to support its business operations and address additional capital requirements, as per filings.

Founded in 2020, Rupifi enables MSMEs to access multiple lenders on digital B2B platforms and marketplaces, similar to iSpirt’s Open Credit Enablement Network. It offers Line of Credit, Invoice Financing, and loans, focusing on seamless digital experiences and smart underwriting for banks, NBFCs, and service providers.

Rupifi has raised over $35 million to date including its $25 million in Series A led by Tiger Global and Bessemer in 2022. According to the startup data intelligence platform TheKredible, Quona Capital is the largest external stakeholder, followed by Tiger Global and Bessemer Venture Partners.

The Bengaluru-based firm reported flat revenue at Rs 33.74 crore for the fiscal year ending March 2024. Meanwhile, the company reduced its losses by 22.8%, bringing them down to Rs 61.6 crore in the last fiscal year from Rs 79.8 crore in FY23.

Update: The previous version of the story stated that Rupifi would raise Rs 1,215 crore ($146 million) via a rights issue. However, the company’s founder clarified that the round size has been restructured and will be approximately $2 million (the remaining $144 million worth of rights issues will be disposed of).