Mumbai-based Infinity Fincorp Solutions Pvt Ltd, a non-banking financial company, has raised $26 million (around Rs 217 crore) in its latest funding round led by Jungle Ventures.
Magnifico, an investor group of high-net-worth individuals, also participated in the funding mop-up of Infinity, which provides credit for micro, small and medium enterprises (MSME) and micro entrepreneurs.
“We are witnessing strong tailwinds for our business which is at the cusp of a multi-year compounding growth journey. This capital infusion will allow us to invest in our distribution and footprint, accelerating our mission of extending easy credit to MSME businesses across the country,” said Shrikant Ravalkar, founder, managing director and chief executive officer of Infinity.
At present, Infinity operates in eight Indian states. It lends to micro-entrepreneurs like tea shop owners, vegetable vendors, small machine enterprises, restaurants, provision stores, textile shops, electricians, plumbers, carpenters, milkmen, laundry service providers, hairdressers, and financially underserved small-scale manufacturers.
The total loan book of the company is over Rs 750 crore. It has disbursed more than 20,000 loans as of March 2024.
Indium IV (Mauritius) Holdings Ltd, which is backed by homegrown private equity firm True North, will continue to have controlling stake in the NBFC.
“Within a few years of inception, we’ve seen the firm go through a remarkable growth trajectory. The management team at Infinity Fincorp, through its deep understanding of the affordable lending sector in semi urban India, is addressing significant demand gaps in the market, using strong systems and processes for sourcing, underwriting and collection, while delivering healthy profitability,” said Nitin Nayak, nominee of Indium IV on Infinity’s board.
Bengaluru-based Unitus Capital acted as the financial transaction advisor and Samvad Partners as legal advisor to Infinity Fincorp, and Shardul Amarchand Mangaldas acted as legal advisor to Jungle Ventures.
