IIFL Fintech Fund Achieves Final Close of Second Fund

IIFL Fintech Fund, supported by IIFL Group, has successfully concluded its second fund, securing Rs 500 crore from various domestic family offices and high net worth individuals. The objective of this Series II fund is to invest in early to growth stage fintech ventures, particularly those leveraging generative artificial intelligence to create innovative financial services products.

Investment Focus and Strategy

The fund plans to allocate its resources across 20 to 25 startups encompassing areas such as lending, payments, compliance, wealthtech, insurtech, and embedded finance. It is noteworthy that approximately 20 to 25 percent of the second fund will be reserved for follow-on investments aimed at supporting top-performing entities from the inaugural fund.

Previous Fund Milestones

IIFL Fintech had previously announced the first closing of its second fund at Rs 200 crore in January 2025 and has already invested in five startups as part of this initiative. These include notable enterprises like education-oriented fintech GrayQuest, the voice AI platform Fundamento, banking infrastructure entity Knight Fintech, and a secondary share acquisition in the document infrastructure provider Leegality, among others.

Partnership with Fintech Founders

According to IIFL Fintech, the fund is dedicated to actively collaborating with fintech founders to aid them in validating, deploying, and scaling their solutions within a comprehensive financial services ecosystem.

Historical Fund Performance

The fund had closed its first fund in 2022, raising Rs 200 crore. Established in 2021, IIFL Fintech Fund aims to invest in early-stage fintech companies that align with the interests of the IIFL Group. Over the past four years, IIFL Fintech Fund has made significant investments across various fintech segments, building a diverse portfolio that includes firms like Leegality, FinBox, DataSutram, Finarkein Analytics, Finvu, Trendlyne, Insurance Samadhan, Xtracap Finance, Castler, Vitra.ai, EasyRewardz, Multipl, Riskcovry, and TrustCheckr, which was acquired by Truecaller.