MSME lender Indifi Technologies provides loans worth Rs 500 crore to SMEs in the second quarter of FY22; up 43% from the previous quarter

To address a broader use case of customer borrowing needs, Indifi launched products with shorter tenure duration for small businesses, modeled on Buy Now Pay Later and Early Payment Financing.

Credit and finance for MSMEs: Gurugram-based online lending platform Indifi Technologies announced on Wednesday that the second quarter of fiscal year (FY) 2021-2022 was its best quarter ever with loan volumes exceeding pre-Covid levels .

The company said it had reached the assets under management (AUM) milestone of Rs 500 for the second quarter of fiscal 22, up 43% from the previous quarter. The increase was attributed to growth in segments such as e-commerce, pharmacy and retail which saw a 30% increase in the average loan amount.

In addition, the company launched products with shorter lifetimes to meet broader use cases of customer borrowing needs, such as Buy Now Pay Later and prepayment financing. “Shorter lifespan and higher frequency products are an area we have grown into because they have less risk and also because we weren’t serving this use case before,” said Alok Mittal, co-founder and CEO of Indifi at Financial Express Online.

The number of loans has also increased. “For most credit companies, including ours, the number of borrowers declined during Covid. So we fell but now we have made up for that loss, ”Mittal said.
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Since its inception, the company has focused on lending to small, industry-specific businesses such as restaurants, e-commerce vendors, and grocery and electronics retailers, among others. During the pandemic, Indifi included pharmaceutical retailers and distributors to its lineup as healthcare spending increased.

Aditya Harkauli, Chief Commercial Officer of Indifi, said in a statement: “Our continued use of a deeply verticalized and segment-specific underwriting / account management approach has been able to detect and assess the incremental impact of related disruptions. to Covid between borrower segments. »More than 80% of Indifi’s activities were carried out through partnerships with companies such as Meta (formerly Facebook), Swiggy, Zomato, First Data, Google Pay, while the rest was carried out through direct channels such as the website and its recently launched mobile app. The company had partnered with more than 100 companies, 50 of which were active on the platform.

Indifi has offered commercial loans ranging from Rs 1 lakh to Rs 50 lakh to small businesses with an average ticket of Rs 6 lakhs. During the past five years, the company had disbursed 40,000 loans amounting to Rs 17,000 crore.

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