Infinity Fincorp Solution: Significant Investment from Partners Group

Infinity Fincorp Solution, a leading non-bank lender in India, has recently formed a share purchase and subscription agreement with Partners Group, allowing Partners Group to acquire a substantial majority stake in the organisation.

Investment Details

The investment totals Rs 19.5 billion (approximately $230 million) in Infinity, spearheaded by Partners Group, with support from existing investor Jungle Ventures. This funding package includes a primary issuance of Rs 6 billion (around $70 million) along with a secondary purchase from Indium IV (Mauritius) Holdings Limited, a fund managed by Global Opportunity Advisors (Mauritius) Limited, which is under the guidance of True North Managers LLP, in addition to other stakeholders.

Utilisation of Funds

According to Infinity, the investment will be utilised to expedite its branch rollout and invest in advanced technology aimed at improving customer onboarding and experience.

Target Audience and Services

Based in Mumbai, Infinity targets unbanked and under-banked Medium Small & Micro Enterprises (MSMEs) across India, helping small businesses and entrepreneurs unlock their growth potential. The company provides tailored secured loans to entrepreneurs and small business owners through over 120 branches spanning eight states. Infinity currently manages assets exceeding Rs 12 billion (around $140 million).

Customer Base

Infinity boasts a customer base of approximately 50,000 individuals, with many operating within the agriculture, trading, and manufacturing industries, typically residing in smaller towns and cities across the nation.

Market Insights

Market research indicates that the credit gap for the MSME sector is estimated at Rs 33 trillion and is witnessing a growth rate of around 16% annually.

Industry Trends

Infinity operates within the MSME segment in India, which is experiencing several supportive trends, such as robust economic growth, the formalisation of lending processes, increasing government backing, and rapid digitalisation. These factors are contributing to a quicker transition from customer onboarding to loan disbursal.