IIFL Fintech Fund logs over 100% return from Finarkein exit
The exit comes as IIFL Fintech Fund continues to ramp up its presence with a second fund. It recently announced the first close of IIFL Fintech Fund – Series II, securing commitments of over Rs 200 crore.
IIFL Fintech Fund, an early-stage investor in India’s financial technology sector, has exited its investment in Finarkein Analytics, recording over a 100% return within three years, according to a company statement on Tuesday.
This marks the fund’s second successful exit following the sale of TrustCheckr to Truecaller in October 2023.
“With Finarkein also, we went beyond the business aspect to enhance their overall product and platform to ensure faster business adoption,” said Fund Manager Mehekka Oberoi. “Attaining a more than 100% return and ensuring liquidity to our investors underscores our commitment to ensuring our investors make good returns.”
Founded in 2021, IIFL Fintech Fund—backed by the IIFL Group—targets startups that can potentially integrate with IIFL’s broader financial services ecosystem. The fund’s portfolio includes names such as Leegality, FinBox, DataSutram, Finvu, Trendlyne, Riskcovry, and more.
Finarkein Analytics operates in the data and workflow orchestration space, enabling enterprises to develop solutions built on India’s emerging digital public infrastructure, including the Account Aggregator (AA) framework, ONDC for financial services, and OCEN (Open Credit Enablement Network).
The exit comes as IIFL Fintech Fund continues to ramp up its presence with a second fund. The firm recently announced the first close of IIFL Fintech Fund – Series II, securing commitments of over Rs 200 crore to back the “next generation fintechs of India, including in the generative artificial intelligence space,” the company said.
Over the past three years, the fund’s overall portfolio has reported 26.2 times revenue growth. Around 40% of the companies are EBITDA positive, and the fund claims a 0% write-off rate.
IIFL Fintech Fund generated about 80% returns from its earlier exit in TrustCheckr, completed within 18 months. “The fund is committed to giving cash flows to investors from time to time,” Oberoi added.
According to IIFL, India's fintech opportunity remains sizable as the country continues to lag behind developed economies in insurance, lending, mutual fund assets, and neobanking by a factor of three to five times.
Edited by Suman Singh