IIFL Group to finance Rupees 300 cr in early-stage Fintech Start-ups

Fairfax Financial Holdings Ltd-backed IIFL Group said on Thursday the firm plans to invest Rs300 crore through IIFL Fintech Fund in early-stage fintech startups over the next two years.

It had launched IIFL Fintech Fund in August, with commitments from two group companies - IIFL Finance and IIFL Securities. The fund has so far invested in Leegality, FinBox, Trendlyne, and DataSutram. It is looking to back startups that offer last-mile credit, and is in advanced stages of discussion to back 10 more startups in FY22.

“There is always a need for early-stage funding to nurture the fintech startup ecosystem, as they play a big role in accelerating the financial inclusion process," stated R. Venkataraman, co-promoter, IIFL Group and chairman, IIFL Securities Ltd.

IIFL Finance claims to have a retail customer base of 60 lakh across India, which are mostly based out of ‘underserved and unbanked’ territories. The company thus wants to offer short-term business, affordable home loans, credit to micro-finance units, among other credit products through such investments, to these customers and further expand its footprint.

Similarly, IIFL Securities, a retail-focussed broking firm, which claims to have 23 lakh customers, is eyeing digital transformation, and through these investments, the company is looking to offer different capital market products to all parts of the country, the company said.

IIFL said the fund was an extension of ‘IIFL Disrupt’ program, which IIFL Securities had launched last year to provide mentoring, financial and business support to fintech firms.