Indifi will allocate 35 61 830 CCPS Series D1 to its existing investors
Indifi is backed by Accel Partners, Elevar Equity, Omidyar Network, CDC Group and others
Last week, Facebook partnered with Indifi to provide loans to small businesses in India
The online lending platform Indifi is raising 53 Cr INR ($ 7.3 million) in a new round of funding. In accordance with the documents consulted by Inc42, Indifi will allocate 35 61 830 compulsory convertible preferred shares (CCPS) to its existing shareholders. The startup calls it a D1 series round, arguably a bridge round before continuing to increase the D-series round. Indifi has proposed that each D1 series CCPS be issued at a face value of INR 20 and at a premium. from INR 128.8. Existing Indifi investors include Accel Partners, Elevar Equity, Omidyar Network, CDC Group, Rajan Anandan and others. Indifi chose not to comment on the development.
Gurugram-based B2B lender Indifi was founded by the former Indian chief of venture capital firm Canaan Partners, Alok Mittal, along with Siddharth Manhot and Sudeep Sahi in 2016. While Manhot has previously worked with companies such as Indiabulls Housing Finance, Edelweiss Financial Services and Citibank; Sahi was previously with a mobile internet company called IgniteWorld, a joint venture between Yahoo Japan, Bharti and SoftBank.
Indifi provides personalized term loan, line of credit, bill discount and cash advance services for travel, e-commerce, retail, restaurant and hotel businesses. The startup is partnering with various companies including banks, NBFC, e-commerce platform and others. Some of the big companies he has partnered with include Flipkart, Swiggy, Zomato, Amazon, Yatra, SpiceJet and others. The startup claims to have disbursed more than 35,000 loans, served 200 clients in more than 12 sectors.
Earlier this year, Indifi raised 35 Cr INR in debt financing from IndusInd Bank with a guarantee from the US International Development Finance Corporation. The said funds were allocated to Riviera Investors Private Ltd, an internal subsidiary of NBFC d’Indifi. Indifi has completed its C series cycle worth 145 Cr INR ($ 21 million) in 2019. The investment cycle was then carried out by the CDC group with the active participation of existing investors such as Accel India, Omidyar Network, Fair Finance Fund and Elevar Equity. The investment would have been used by the startup to diversify into new verticals, develop a technology and data infrastructure for future growth and expand its service offerings to its clients.
The startup in 2016 pocketed $ 10 million in its Omidyar Network-led Series B round with its existing investors, as it raised a undisclosed funding amount from Accel Partners and Elevar Equity, one day after its official launch on September 30, 2015. Indifi has also partnered with Indian Angel Network (IAN) to launch a growth stage debt fund to help IAN portfolio companies obtain working capital. Last week, Facebook partnered with Indifi to offer loans to small businesses across the country. Indifi competes with Kreditbee, Navi led by Sachin Bansal, Lendingkart, Rupteek and others.
Digital lending is considered one of the fastest growing segments of the FinTech industry. According to a statistical report, the Indian digital loan market has grown from $ 9 billion in 2012 to $ 150 billion in 2020. The report further estimates that the COVID19 outbreak, which has resulted in the loss of jobs and the closure of companies, has pushed individuals and small businesses to approach online lenders rather than traditional banks. due to poor credit scores. This trend is expected to push the digital lending market to reach $ 350 billion by 2023.