The funding includes an equity component of Rs 140 crore led by CX Partners and OP Finnfund Global Impact Fund I, and Rs 200 crore in debt financing from Vivriti, Northern Arc, SIDBI, and other lenders, the company said.
The company may extend its Series D round by raising more capital, it said.
“Indifi is also in advance conversation with select global funds for participation in the Series D raise,” it said.
Indifi will use the funds to serve more customers, identify additional segments of micro, small and medium enterprises (MSMEs), and for technology and product development, the company said in a statement.
With this funding round, the company has raised Rs 350 crore in total equity financing.
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“Although India is home to numerous MSMEs, most of them lack access to funding. At Indifi, we address this problem by working closely with more than 100 data partners and a few top financial institutions, providing easily accessible loans digitally, and helping businesses grow…,” said Alok Mittal, CEO and cofounder, Indifi Technologies.
Indifi offers business loans to MSMEs across sectors such as travel, hotel, e-commerce, restaurant, trading, and retail businesses.
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.
“Indifi as a marketplace leader is enabling lenders and borrowers to participate and transact seamlessly,” he added.
According to Indifi, India is home to around 63 million MSMEs, and a majority of them face microcredit challenges, making it difficult to efficiently manage and meet working capital needs.
“This investment allows Indifi to expand its services more broadly to the Indian MSME sector that is critical for economic development and employment,” said Tuomas Virtala, head of asset management at OP Corporate Bank.
One of Indifi’s key offerings is for women entrepreneurs and enabling credit for underserved, small businesses in India.
“We have long experience with fintech companies, and we see that Indifi fills a market gap. The platform brings together partners and lenders to help previously underserved small businesses access unsecured business loans,” said Kuutti Kilpeläinen, investment manager, Finnfund.
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