IIFL Fintech Fund, the early-stage investment arm of Mumbai-based financial services major IIFL Group, has closed its second fintech fund at Rs 200 crore ($23 million).
The new vehicle—IIFL Fintech Fund Series-II—raised the same amount as its predecessor. The firm's first vehicle also raised about Rs 200 crore, although it targeted Rs 300 crore.
The first fund was backed by group companies IIFL Finance Ltd and IIFL Capital Services Ltd, the wealth management arm of IIFL Group. However, the new vehicle has secured commitments from a bunch of wealthy individual investors and family offices, IIFL Capital said in a statement. It did not identify any of the investors.
“Considering that India’s fintech is the only segment which is expected to grow 11x versus Indian online retail and Indian consumer tech where the expected growth is 3x and 5.8x, respectively, the interest received for the fund was palpable,” said Prakash Bulusu, Joint CEO, IIFL Capital.
IIFL Capital said the fund will look to invest in new-age fintech companies, including those operating in the generative artificial intelligence space.
IIFL Fintech Fund was set up in 2021. Over the last three years, it has backed 14 companies in the fintech space. These include Leegality, FinBox, DataSutram, Finarkein Analytics, Finvu, Trendlyne, Insurance Samadhan, Xtracap Finance, Castler, Vitra.Ai, EasyRewardz, Multipl, Riskcovry, and TrustCheckr.
IIFL said the portfolio has delivered a 22.5x revenue growth in the last three years and that the fund hasn’t written off any of its investments.
The first fund announced its first exit in October 2023 when it divested its stake in fraud detection platform TrustChekr to Swedish caller identificaiton app Truecaller, clocking an 80% return on its investment.