Indifi Technologies, a startup based in India, specializes in digital lending for small and medium businesses. Recently, the company secured $35 million in a fresh funding round led by ICICI Venture, the investment arm of ICICI Bank. Notably, existing investors such as British International Investment, OP Finnfund Global Impact Fund I, Omidyar Network India, Flourish Ventures, and CX Partners also participated in the Series E round, which consisted entirely of equity.
In India, there are approximately 63 million micro, small, and medium-sized businesses, which play a vital role in the nation’s economy. They contribute over 30% to the country’s gross domestic product and employ more than 113 million people. However, these businesses often struggle to access credit, hindering their growth potential. A report by the Reserve Bank of India’s Expert Committee in December 2018 highlighted this issue, revealing a substantial credit gap ranging from $243 billion to $303 billion (20–25 lakh crore Indian rupees) in the MSME sector.
Founded in 2015 by Alok Mittal and Siddharth Mahanot, Indifi aims to bridge this credit gap by providing various types of loans to businesses with annual turnovers ranging from $36,400 to $1.21 million. Through its online marketplace, the startup facilitates the convenient acquisition of unsecured loans tailored to the unique needs of businesses across sectors such as travel, e-commerce, hotels, and retail.
Alok Mittal, Indifi’s CEO and managing director, expressed his confidence in the company’s operations, stating, “That is a demonstration of the fact that other banks and NBFCs trust us to be able to run a tight lending ship not just from a technology and analytics standpoint, but from a core operations standpoint,” in an interview with TechCrunch.
With its headquarters in Gurugram, Indifi has successfully disbursed over 73,000 loans across 400 cities, amounting to a total disbursement value exceeding $497 million. Its assets under management reached $182 million in March, indicating a remarkable growth rate of over 100% compared to the previous year.
Indifi serves a diverse client base, including around 30% of customers who have been in business for less than two years, typically falling below the eligibility criteria for traditional bank loans. Furthermore, more than 20% of the company’s customers are women entrepreneurs who often face challenges when seeking credit through conventional channels.
