Indifi Secures Funding for Expansion in Digital Lending

Indifi, a digital lending platform, is poised to secure Rs 79 crore (approximately $8.3 million) in its initial funding round after three years. This round is spearheaded by ICICI Venture, with participation from British International Investment (BII), Accel India, and Parul Alok Mittal.

In June 2023, the Gurugram-based firm raised $35 million during its Series E funding round, also led by ICICI Venture. Existing investor British International Investment (BII) and other contributors were involved in this round as well.

The company’s board has given the go-ahead for the issuance of 43,55,975 compulsory convertible preference shares (CCPS), each priced at Rs 181.36, to generate the necessary capital, as specified in its regulatory filings reviewed by Startup Superb.

Funding Breakdown and Future Plans

ICICI Venture, through its India Advantage Fund, will provide Rs 29 crore in this round. Meanwhile, British International Investment (BII) will invest Rs 27 crore. Accel India and Parul Alok Mittal will contribute Rs 14 crore and Rs 9 crore respectively.

According to estimates from Startup Superb, the company’s valuation will remain at Rs 1,418 crore, unchanged from its Series E round. Indifi aims to utilise the newly acquired capital for expanding its business, enhancing infrastructure, meeting working capital needs, repaying debts, and other general corporate activities.

Company Overview and Performance Metrics

Indifi, established in 2015 by Alok Mittal and Siddharth Mahanot, specializes in providing technology-driven unsecured business loans specifically tailored for small and medium enterprises (SMEs). So far, the platform has disbursed over 1.5 lakh loans across 400 cities in collaboration with more than 80 lending institutions.

Post-funding allotment, British International Investment (BII) is expected to maintain the position of the largest external shareholder, holding a 17.10% stake. Following closely, India Advantage Fund S5 I will have a 15.33% share. Accel India IV (Mauritius) Limited is set to possess 10.94%, while Parul Alok Mittal will hold a 1.56% stake in fully diluted terms.

The company has yet to release its financial statements for FY26. Nonetheless, reports indicate that in FY25, Indifi’s operating revenue surged by 22.4% to reach Rs 360 crore, up from Rs 294.24 crore in FY24. However, losses increased by 64% during the same timeframe, from Rs 27.46 crore to Rs 45.04 crore.