Mumbai-based Infinity Fincorp Solutions Private Limited, a non-banking financial company, has announced an equity fundraise of $26 million led by Jungle Ventures with participation from Magnifico (an HNI Investor Group).
Infinity, which operates in eight Indian states, lends to micro-entrepreneurs like tea shop owners, vegetable vendors, small machine enterprises, restaurants, provision stores, and textile shops. Its client base also includes electricians, plumbers, carpenters, milkmen, laundry service providers, and hairdressers who are financially underserved.
The company claims to have built a total loan book of over Rs 750 crore.
“We are witnessing strong tailwinds for our business which is at the cusp of a multi-year compounding growth journey,” said Shrikant Ravalkar, Founder, MD and CEO of Infinity, in a press statement.
“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,” he added.
Indium IV (Mauritius) Holdings Limited (advised by True North) has a majority stake in Infinity.
Micro-enterprises comprise over 95% of all businesses in India and yet face a significant formal credit gap exceeding $500 billion. Infinity Fincorp claims to be addressing this gap with its asset-backed financing solution.
In another fundraise by a finance company on Thursday, Electronica raised $48 million in LeapFrog Investments and Aavishkaar Capital. Electronica provides loans to micro, small, and medium enterprises.
