Mumbai based Infinity Fincorp Solutions Private Limited (“Infinity”), a Non-Banking Financial Company, is pleased to announce an equity fundraise of $26 million led by Jungle Ventures with participation from Magnifico (an HNI Investor Group). Infinity remains committed to its vision to enable access to credit for Micro, Small and Medium Enterprises (MSME) and micro entrepreneurs and the current fund raise will be a robust enabler in that direction.
Infinity operates in eight Indian states and has created a niche for itself by specializing in lending 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, all covered under the MSME umbrella. The total loan book of the company is INR 750+ crores across 20,000+ loans as of March 2024.
Indium IV (Mauritius) Holdings Limited (advised by True North) which has a majority stake in Infinity will continue to have controlling stake in the NBFC.
Talking about the fund raise, Shrikant Ravalkar, Founder, MD and CEO of Infinity said, We are extremely proud of the journey Infinity has seen in the last 4 years. We are witnessing strong tailwinds for our business which is at the cusp of a multi-year compounding growth journey. My entire team is extremely excited to have Jungle Ventures as our partner in this endeavour and thank them for their confidence in us. 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. I also express my deepest gratitude to Indium, and their advisors True North, for their unwavering support and the employees and partners of Infinity for their stupendous efforts.”
Commenting on Infinity's potential, Nitin Nayak, nominee of Indium IV on Infinity’s board, said,” 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 & processes for sourcing, underwriting and collection, while delivering healthy profitability.”
Acknowledging Infinity Fincorp’s vision Divya Sehgal, Partner at True North commented, “The firm aims to lead the retail NBFC lending sector in India with a specialisation in secured micro MSME loans. Trust, Transparency and Customer centricity form the core pillars of the company’s operations. The entire team at Infinity Fincorp is committed to upholding a strong governance framework, leveraging technology and institutionalising company values and overall output. We wish the firm continued success as it advances its growth plans.
“Micro-enterprises comprise over 95% of all businesses in India, yet they face a significant formal credit gap exceeding $500 billion. Infinity Fincorp is addressing this gap with its asset-backed financing solution, simultaneously fostering sustainable business growth. Infinity's loans not only aid entrepreneurs in meeting their working capital requirements but also facilitate business expansion and job creation in the most remote areas of India. We are thrilled to be involved in this endeavor and look forward to supporting the team as they take this offering across the country.” said Arpit Beri, Partner, India Investments, Jungle Ventures
Bangalore based Unitus Capital acted as the exclusive financial transaction advisor to Infinity, while Samvad Partners acted as legal advisor to Infinity Fincorp, and Shardul Amarchand Mangaldas acted as legal advisor to Jungle Ventures.
