MSME lender Infinity Fincorp secures $35M in funding round led by Jungle Ventures and others

Infinity Fincorp Solutions, a Mumbai-based NBFC specialising in MSME lending, has raised $35 million in a funding round led by Jungle Ventures, with participation from Archerman Capital and Magnifico.

"This stands as a testament to our years of hard work as we successfully closed $35M fundraise, post-RBI approval which was received in October 2024 for change in shareholding. This fundraise significantly bolsters our capital position with Infinity’s net worth at Rs 530 crores and capital adequacy at 62% as against a regulatory requirement of 15%," Shrikant Ravalkar, Founder, MD & CEO of Infinity, shared.

The capital adequacy ratio (CAR) measures a financial institution's ability to absorb potential losses and meet obligations by comparing its available capital to its risk-weighted assets, ensuring it remains financially stable.

Growth

The company’s Assets Under Management (AUM) surpassed Rs 1,000 crores in November 2024, marking a 33% increase since March. Infinity expects its AUM to reach Rs 1,300 crores by March 2025, fueled by a focus on underserved MSMEs in India’s estimated Rs 78 lakh crore credit gap.

Infinity posted a profit of Rs 26 crore in FY2024 and projected Rs 47 crore for FY2025.

Over the last year, it disbursed Rs 562 crore across its 120-branch network in eight states, targeting small businesses such as tea shop owners, vegetable vendors, and electricians often overlooked by traditional lenders.

"Our decision to double down on Infinity is a testament to their exceptional execution and ability to deliver in the MSME-secured lending space. While the broader market faces challenges, Infinity’s disciplined approach and high-quality portfolio stand out," Arpit Beri, Partner, India Investments at Jungle Ventures, commented on the fundraise.