Digital lending platform Indifi Technologies is set to raise ₹79 crore (around $8.3 million) in a fresh funding round led by ICICI Venture. The company is using the new capital to strengthen its lending business as it shifts its focus towards secured loans amid rising pressure on profitability and asset quality.
While Indifi continues to report strong revenue growth, higher finance costs, increased provisioning for bad loans, and rising collection expenses have impacted its earnings. The company is now expanding its secured lending portfolio to reduce risks linked to unsecured loans for MSMEs.
ICICI Venture Leads Fresh Investment Round
Indifi is raising ₹79 crore in a new equity funding round led by ICICI Venture, which is investing ₹29 crore through its India Advantage Fund S5 I. Existing investor British International Investment (BII) is investing ₹27 crore, while Accel and Parul Alok Mittal will contribute the remaining amount.
The funding values Indifi at around ₹1,418 crore, keeping the company’s valuation unchanged from its previous funding round.
After the share allotment, investment funds will hold 67.19% of the company. British International Investment will remain the largest external shareholder with a 17.10% stake, while ICICI’s India Advantage Fund S5 I will become the second-largest investor with a 15.33% stake.
The fresh capital is expected to support Indifi’s lending operations and help the company expand its business in the growing MSME lending market.
Revenue Grows, But Losses Rise
Indifi reported solid business growth during FY25, but its losses also increased.
The company’s operating revenue rose 22% year-on-year to ₹360 crore, while total income reached ₹378 crore. Its EBITDA improved to ₹107 crore from ₹90 crore in FY24, showing better operational performance.
However, the company’s net loss increased by 64% to ₹45 crore during the year. The higher loss was mainly due to increased finance costs, higher collection expenses, larger provisions for bad loans, and the shift from IGAAP to IND-AS accounting standards.
Its lending arm, Indifi Capital, also reported a net loss of ₹8 crore in the first quarter of FY26, nearly 5.7 times higher than the same period last year.
The company’s asset quality also came under pressure. Gross Non-Performing Assets (GNPA) increased to 4.56% by the end of June 2025, mainly because many MSME borrowers across the market had taken on higher debt.
To manage this risk, Indifi has tightened its credit approval process and reduced exposure to unsecured loans.
At the same time, the company is expanding into secured lending products such as Loan Against Property (LAP) and Supply Chain Financing (SCF). These products currently make up about 10% of its business, but Indifi expects them to contribute 20% to 25% of its total Assets Under Management (AUM) over the next three years.
As of June 2025, the company’s total AUM stood at around ₹1,982 crore.
Indifi also saw a leadership change last year. Co-founder Siddharth Mahanot stepped down from his executive role on September 30, 2024, but continues to remain on the company’s board and is still a shareholder. The company is now led by co-founder Alok Mittal and CEO Sangram Singh, who took charge in December 2023.
Apart from the equity funding, Indifi recently secured ₹40 crore in debt funding from BlackSoil Capital to support its SME lending business.
ICICI Group Restructuring Brings a New Investment Manager
The latest funding round comes as the ICICI Group is reorganising its investment business.
ICICI Prudential Asset Management Company has taken over the alternative investment fund (AIF) management and advisory business of ICICI Venture Funds Management Company through a slump sale. The move brings the group’s private equity, venture capital and real estate investment businesses under one platform.
As part of the deal, the management rights of five SEBI-registered Category II Alternative Investment Funds, including India Advantage Fund S5 I, have been transferred to ICICI Prudential AMC. The transaction also includes advisory rights for an offshore investment fund, while some older funds will continue to be managed by ICICI Venture.
According to a valuation report prepared by PwC, the fair value of the transferred business was around ₹88.7 crore as of March 31, 2025.
The Competition Commission of India approved the transaction in November 2025, and SEBI gave its final approval on March 2, 2026. ICICI Prudential AMC officially started managing these funds from April 1, 2026.
Since ICICI Venture invested in Indifi through India Advantage Fund S5 I, the management of this investment has now shifted to ICICI Prudential AMC. This means the fund holding a 15.33% stake in Indifi will now be managed by ICICI Prudential AMC, making it an important institutional investor as the company works to improve asset quality, grow its secured lending business, and achieve long-term growth.