IIFL Fintech Fund is planning to invest INR 300 crore in Indian early-stage fintech startups in the next two years to facilitate the creation of affordable products and technologies that aid financial inclusion announced the FREEFairfax-backed Group on December 23, 2021.
“We have already invested in four startups from the fund and committed four more investments. By March next year, we will have ten companies in the portfolio,” said Mehekka Oberoi, fund manager at IIFL Fintech fund.
Oberoi said the fund would be deployed in 25 startups and invest in fintech companies up to the Series B round. The focus will be to invest in fintech startups with affordable products and technologies that aid financial inclusion.
The fund was set up in August
The fund was set up in August 2021 with INR 140 crore sponsorship from two IIFL Group firms—IIFL Finance and IIFL Securities. In the first three months of its existence, it has invested in four fintech startups—Leegality, FinBox, Trendlyne and DataSutram—in the first three months of its existence and is in advanced stages of discussion to invest in 10 more by the end of the current fiscal.
There is always a need for early-stage funding to nurture the fintech startup ecosystem, said R Venkataraman, co-promoter of IIFL Group and chairman of IIFL Securities. “Fintechs play a big role in creating cost-effective delivery of various financial products to the underserved and unbanked customers and help in accelerating the financial inclusion process,” Venkataraman said.
The fund is also looking to invest in wealth-tech, internet baking, risk and fraud technology and payments.
The company is on an investing spree
“IIFL Group’s entrepreneurial journey from a one-room operation to a formidable financial services group in the last two decades helps us understand the investing, mentoring and growth needs of entrepreneurs in Indian financial services and fintech space,” said Venkataraman.
Similarly, IIFL Securities, a retail-focused broking firm with 23 lakh customers, is eyeing digital transformation. Through these investments, the company is looking to offer different capital market products to all parts of the country, the company said.
IIFL said that the fund is an extension of the ‘IIFLDisrupt’ program, which IIFL Securities had launched last year to provide mentoring, financial and business support to fintech firms.