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Indifi Technologies Secures Funding to Revolutionize MSME Lending Landscape in India



Indifi Technologies’ funding of USD 35 million in June 2023 from ICICI Venture, the investment arm of ICICI, has come as a big feat for the Indian startup business. Indifi has raised over USD 80 million to date, and it remains committed to its goal of solving underwriting challenges that limit the flow of credit to millions of entrepreneurs in the country – Their clients mainly being first-generation entrepreneurs and B2C companies.

What is Indifi Technologies?

Founded in 2015 by Alok Mittal and Siddharth Mahanot, Indifi is a Gurugram-based digital lending platform that provides loans to Micro, Small, and Medium Enterprises (MSMEs). They offer term loans, lines of credit, invoice discounting, and merchant cash advance services customized for companies based in travel, e-commerce, retail, restaurants, and hotels. Indifi came to life to introduce emerging technology investment initiatives to local businesses after identifying the lack of earning opportunities for local businesses contrary to e-commerce sellers, resulting in multiple MSMEs losing out on potential profits due to a lack of online presence.

How does Indifi Technologies help small business owners in India?

Indifi’s significant capital funding will increase its growth as it expands its offices and amplify its presence in the industry. According to InShorts, Accel Group, Omidyar Network, Fair Finance fund, and Elevar Equity also participated in the funding raised by Indifi. Almost 50% of its loan book is fueled by its non-banking finance company (NBFC), with the rest coming from financial partners. With its recent inflow of funds, Indifi reaches even closer to its goal of providing an easy flow of credit to small businesses. In the MSME lending tech space, Indifi has asserted itself among its competitors, including Lendingkart, AyeFinance, Kredx, and Flexiloans, among others.

Why help MSMEs?

It is estimated there are a staggering ~63.39 million MSMEs in India across industries, making it one of the most significant sectors of the Indian economy. In fact, the sector is likely to contribute ~50% to the country’s GDP by 2025, according to TOI. Additionally, the sector also has the highest employment rate in the country, with ~9.3 million people employed by MSMEs in FY 22, according to the Udyam Portal of the Ministry of MSMEs.

Alok says, “A key constituent within the Next Half Billion group is MSMEs. 85% of those MSMEs today do not have access to formal credit to reach their full potential.” MSMEs provide young or unemployed entrepreneurs with many opportunities and help them avoid long-term unemployment. It also creates job opportunities on a large scale, especially in the country’s raw, rural and remote areas. Not only do MSMEs create more job opportunities and increase the number of entrepreneurs, but they also decrease poverty and improve living standards for those below the poverty level.


Therefore, with Indifi Technologies’ funding of USD 35 million, it stands tall as a catalyst for change, unlocking the potential of MSMEs by providing easy access to credit to unlock their full potential. By bridging the credit gap and supporting the growth of MSMEs, Indifi is fostering economic prosperity and driving India toward a future of inclusive growth. Therefore, in a world where possibilities are endless, Indifi is poised to revolutionize the lending landscape in the country.

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