Indifi Technologies, an India-based digital financial services company, has raised a total of Rs 340 crores ($46) million in Series D equity and debt funding.

According to its statement, 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 crores ($19 million) in Series D round of equity capital raise for Indifi.

Indifi has also secured Rs 165 crores ($27 million) in debt financing from Vivriti, Northern Arc, SIDBI, along with other lenders. Additionally, United States International Development Finance Corporation has guaranteed Rs. 35 crores ($5 million) of funding to Indifi.

This Series D round brings Indifi’s total equity fund raise to date at Rs 350 crores ($47 million). Indifi is also in advance conversation with select global funds for participation in the Series D raise.

According to the statement, the funds raised will be used for serving more customers, identifying additional segments of micro, small and medium enterprises (MSMEs), and towards technology and product development.

Indifi Chief Executive Officer and Co-Founder Alok Mittal 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 sized loans to grow their businesses,” he added.

Meanwhile, CX Partners Managing Director Manu Sahni 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 as a marketplace leader 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. CX is glad to partner with Alok, Siddharth, and the Indifi team, and join their board in this exciting journey,” he added.

OP Corporate Bank Asset Management Head Tuomas Virtala also said 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,” he said.

Finnfund Investment Manager Kuutti Kilpeläinen also said the fund has long experience with fintech companies, and it sees that Indifi fills a market gap.

“The platform brings together partners and lenders to help previously underserved small businesses access unsecured business loans,” he said.

Indifi operates an online lending platform that offers business loans to MSMEs that have limited access to credit from financial institutions. It offers tailored loans for travel, hotel, e-commerce, restaurant, trading, and retail businesses.

According to the statement, 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 constantly 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.

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