[Funding alert] Indifi raises Rs 340 Cr in Series D equity and debt funding round

Digital financial services company Indifi will use the funds to serve more customers, identify additional segments of MSMEs, and for technology and product development.

[Funding alert] Indifi raises Rs 340 Cr in Series D equity and debt funding round

Wednesday November 24, 2021,

3 min Read

CX Partners and OP Finnfund Global Impact Fund I (the first Finnish global emerging markets impact fund) along with existing investors CDC Group (the UK’s development finance institution), Omidyar Network, Flourish Ventures, Elevar Equity and Accel, have invested Rs 140 crore in the Series D round of equity capital raise for Indifi Technologies, a digital financial services company based in Gurugram

Indifi has also secured Rs 165 crore in debt financing from Vivriti, Northern Arc, SIDBI, along with other lenders. Additionally, US DFC (United States International Development Finance Corporation) has guaranteed Rs 35 crore of funding to Indifi.

Alok Mittal, CEO and Co-founder, Indifi, said, 

“Although India is home to numerous MSMEs, most of them lack access to funding. At Indifi, we address this problem by working closely with more than 100 data partners and a few top financial institutions, providing easily accessible loans digitally, and helping businesses grow in their journey. For example, our recent collaboration with Facebook digitally enables MSME players to avail small ticket size loans to grow their businesses.”

Indifi operates an online lending platform that offers business loans to micro, small and medium enterprises (MSMEs) that have limited access to credit from financial institutions. The startup offers tailored loans for travel, hotel, ecommerce, restaurant, trading, and retail businesses.

The funds raised will be used for serving more customers, identifying additional segments of MSMEs, and towards technology and product development.

Bridging a gap

This Series D round brings Indifi’s total equity fund raise to date at Rs 350 crore. Indifi is also in advance conversation with select Global Funds for participation in the Series D raise.

Manu Sahni, Managing Director, CX Partners, said, 

“Indifi is filling a critical gap in the Indian lending landscape – to provide loans to small merchants and businesses using technology to bypass constraints of traditional MSME lending by relying on data and integrating with anchor digital ecosystems and financial institutions. Indifi is enabling lenders and borrowers to participate and transact seamlessly.  Financial services is a focus sector for CX and we see Indifi pushing new horizons in that space.”

“This investment allows Indifi to expand its services more broadly to the Indian MSME sector that is critical for economic development and employment. We are convinced that Indifi as a forerunner in India will improve the business possibilities of the MSME sector,” stated Tuomas Virtala, Head of Asset Management at OP Corporate Bank.

According to Kuutti Kilpeläinen, Investment Manager, Finnfund, “We have long experience with fintech companies, and we see that Indifi fills a market gap. The platform brings together partners and lenders to help previously underserved small businesses access unsecured business loans.” 

India is home to around 63 million MSMEs, and a majority of them face microcredit challenges, making it difficult for them to efficiently manage and meet working capital needs. Indifi is addressing this problem by innovating and offering new products within the existing industries or entering new industries with core offering.

One of their key offerings is for the women entrepreneurs and enabling credit for underserved, small businesses in India while simultaneously empowering them to grow their respective businesses.

Haitong India acted as an exclusive advisor to Indifi Technologies on this transaction.


Shardul Amarchand Mangaldas & Co, Quillon Partners, and Cyril Amarchand Mangaldas were the legal advisors to Indifi, CX Partners, and Finnfund respectively.

Edited by Teja Lele

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