Veefin steps up acquisition spree with purchase of EpikIndifi valued at Rs 125 Cr
Veefin plans to expand into a comprehensive working capital technology platform, aiming to enhance its digital lending suite and accelerate growth through strategic acquisitions.
White-labeled supply chain finance and digital lending services provider Veefin Solutions has acquired a banking-focused software solutions company EpikIndifi in a cash and equity swap deal valued at Rs 125 crore, extending its acquisition spree.
In an interview with YourStory, Gautam Udani, Chief Operating Officer & Wholetime Director of Veefin Solutions said four key factors drive the purchase.
Founded in 2017 by a team of bankers, technologists and entrepreneurs, EpikIndifi is a scale-up stage niche software solutions company specialising in banking solutions covering all aspects of a bank’s digital transformation and journey.
EpikIndifi's underwriting module will enhance Veefin’s digital lending suite. “Over time, we will retire our current module and integrate EpikIndifi's underwriting module,” Veefin’s founder explained.
Additionally, the three co-founders, former Infosys leaders, bring valuable expertise in lending. “These guys understand lending as well as we do,” the founder noted.
The acquisition also accelerates Veefin’s growth. “If I had to acquire 50 customers on my own, it would take at least three years,” said Udani. With EpikIndifi, Veefin has doubled its customer base overnight, shortening its sales cycle.
Despite Veefin's leadership in supply chain finance, Udani acknowledged EpikIndifi could have been a future competitor. "If any company could build a similar product in the next few years, it was them."
Veefin is acquiring 26% of the company immediately, as outlined in the signed term sheet, with plans to acquire the remaining 74% by March 2027 through a mandatory fold-in. Over the next two years, EpikIndifi will continue to grow with contributions from Veefin, and the remaining stake will be acquired at a different valuation based on future growth, Udani explained.
However, EpikIndifi's product, customer reach, and experienced founders were not the only reasons for the acquisition. "We are looking to transform ourselves from being supply chain finance experts to a working capital technology platform. That's why we've started subsidiaries and acquired several companies," Udani added.
In June, Veefin acquired Regime Tax Solutions, a GST compliance and automation platform for accounts payable and receivable. "Across 300 plus corporate customers, they process more than 20,000 invoices a day. Being a supply chain finance expert, being present where invoices are processed makes sense to us."
In August, Veefin acquired 100% of Nityo Tech, an IT services and solutions company, part of Nityo Infotech Singapore's India-invested business. "All our customers were asking for customisations or support personnel. Because every bank operates differently, their underwriting processes are different. I have to build small models on top of my product to match their operational requirements."
The expected outlay of the first tranche of all three acquisitions is Rs 215 crore (through cash and equity).
Acquisitions are not the only route Veefin is taking to grow. The company has also formed subsidiaries to expand its horizons and reduce costs by shifting processes in-house.
Infini, a newly incorporated subsidiary, will focus on creating identification and fraud detection APIs, similar to products offered by Perfios, IDfy, and Signzy. "It was an easy cross-sell for us to build the same suite of APIs and offer a fully integrated solution to our existing clientele, rather than relying on third-party API service providers," Udani explained.
With another subsidiary GlobeTF, Veefin working to enter the trade finance and cash management solution space. Trade finance involves various financial instruments and services, such as letters of credit, export credit, and insurance, to facilitate international trade by mitigating risks like payment delays or non-payment.
Veefin’s existing expertise in supply chain finance complements its expansion into trade finance, as banks often have the same teams managing both areas. "For the same operations and credit teams at banks, they currently have to log into two separate systems—one for supply chain finance and another for trade finance. It's a hassle for them. We're aiming to provide a single platform where both needs are addressed, offering convenience from both the bank's and the customer's perspective," Udani concluded.
Veefin builds white-labeled supply chain finance and digital lending solutions including an end-to-end stack from customer onboarding and thorough underwriting to efficient transaction management systems and collections processes.
It counts several private banks such as IndusInd Bank, Yes Bank, and 12 public sector banks as its clients.
(The copy was updated with additional details.)
Edited by Affirunisa Kankudti