Digital lending platform Vivifi India Finance has raise $75 million in a Series B funding round to further extend loans to the salaried class as well as small businesses in India.
This latest infusion of capital comprises $15 million in equity and $60 million in debt, valuing the company at $150 million, according to sources familiar with the matter.
Though Vivifi India has not publicly named its investors, the funding is reportedly sourced from a prominent US-based entity specializing in alternative finance.
This significant investment follows the company’s previous Series A round, where it garnered $6 million in the financial year 2021.
The raised capital will be instrumental in furthering Vivifi’s mission to enhance financial inclusion. The Hyderabad-based firm plans to utilize the funds to extend its services to under-served communities, leveraging its innovative products, FlexPay and FlexSalary.
Anil Pinapala, the founder of Vivifi India, expressed optimism about the company’s growth trajectory, aiming to expand its customer base to one million users within the next 12 to 18 months.
This funding arrives at a crucial time, as regulatory demands for increased capital adequacy in unsecured lending sectors are escalating.
Vivifi India has shown remarkable performance over the past year, disbursing over Rs 1,000 crore to more than half a million customers, primarily in India’s Tier-II and Tier-III cities.
For the financial year 2023, the company reported revenues of Rs 166 crore and a Profit After Tax (PAT) of Rs 16 crore. With aspirations to double its revenue this year, Vivifi aims to disburse over Rs 3,000 crore.
In line with its expansion plans, Vivifi India intends to increase its workforce from 800 to over 2,000 employees in the next 12 to 18 months.
The company also plans to establish new offices in Tier-II and Tier-III cities in Telangana and Andhra Pradesh, with an eye towards a broader nationwide expansion in the near future.