Indifi Technologies, a digital lending platform dedicated to MSMEs, reached profitability in FY26 despite only slight revenue growth. A significant drop in impairment costs, along with stringent management of operating expenses, played a crucial role in enhancing its financial performance. Indifi’s operational revenue rose by a mere 3% year-on-year, reaching Rs 371.1 crore in FY26, compared to Rs 360.4 crore in FY25, based on the financial documents submitted to the Registrar of Companies (RoC). Established in 2015, Indifi is committed to providing debt financing tailored to small businesses, thereby enhancing their access to credit. The company supplies various loans, including supply chain finance, startup lending, D2C ventures, and other bespoke lending solutions aimed at meeting MSME financing needs.
According to Indifi, the platform has supported over 1.6 lakh MSMEs across 400 cities. With the inclusion of other non-operating income, its total income for the year reached Rs 386.85 crore. As a lending entity, the primary revenue source for Indifi comes from interest accrued on loans, accounting for 87% of its operational income, which saw only a 2.4% rise to Rs 321.7 crore in FY26 from Rs 314.3 crore the previous year. Meanwhile, revenue generated from services increased by 19%, amounting to Rs 25.3 crore, which encompassed facilitation, service fees from lending partners, and foreclosure charges. Additional fees and commissions accrued an 11% rise, totalling Rs 12.4 crore in FY26.
On the expenditure side, finance costs constituted Indifi’s largest outlay at Rs 147.4 crore in FY26, up from Rs 142.6 crore in FY25. For a lending company, these expenses pertain predominantly to the capital needed for its loan portfolio. The impairment on financial instruments nearly halved, dropping to Rs 55.3 crore from Rs 107.6 crore in FY25. In its official statement, Indifi attributed this enhancement to improved credit performance, more selective customer engagement, and meticulous portfolio oversight, resulting in a nearly 40% reduction in credit costs during FY26. The employee benefit expenses also saw a decline to Rs 79.9 crore, while legal and professional fees were recorded at Rs 18.8 crore. Nevertheless, collection commission costs surged by 83% to Rs 17.4 crore from Rs 9.5 crore, driven by increased loan collection costs. Overall, Indifi’s total expenditures decreased by 12%, amounting to Rs 376.8 crore in FY26, down from Rs 426.7 crore in FY25.
The significant reduction in impairment and stricter control over operating expenses enabled Indifi to achieve a profit of Rs 5.2 crore in FY26, in stark contrast to a loss of Rs 45 crore in FY25. The company reported completing four consecutive quarters of profitability within the year. Throughout FY26, Indifi also broadened its lending portfolio with offerings in supply chain finance, startup lending, D2C loans, and secured lending. For FY27, the company intends to enhance AI initiatives that were trialed during FY26, improve credit management, and develop both product and digital lending capabilities.