India’s leading early-stage fintech-focused fund, IIFL Fintech Fund, has announced the successful closure of its Series II funding round, raising ₹200 crore from prominent family offices, UHNI, and HNI investors. The fund aims to invest in the next generation of fintech startups, including those exploring cutting-edge opportunities in the generative artificial intelligence space.
Track Record of Success: IIFL Fintech Fund Series I
Established in 2021, the IIFL Fintech Fund was designed to invest in early-stage fintech startups while fostering collaboration opportunities with the IIFL Group. Over three years, the Series I portfolio has achieved remarkable milestones:
- 14 Strategic Investments: The portfolio spans diverse fintech segments and includes market leaders like Leegality, FinBox, Trendlyne, and Insurance Samadhan.
- 22.5X Revenue Growth: The portfolio companies collectively delivered substantial revenue growth over three years.
- EBITDA Positive Startups: 40% of the portfolio companies are now EBITDA positive.
- Zero Write-offs: The fund has reported no deadpool or write-offs, demonstrating its robust selection and support strategy.
Notable exits include TrustCheckr, which was successfully acquired by Truecaller.
What Series II Aims to Achieve
With the close of Series II, IIFL Fintech Fund is poised to further its mission of identifying and nurturing future market leaders in the fintech ecosystem.
Prakash Bulusu, Joint CEO of IIFL Capital Services Limited, highlighted the fund’s momentum:
“India’s fintech sector is projected to grow 11X compared to Indian online retail and consumer tech segments, which are expected to grow 3X and 5.8X, respectively. This growth potential has generated immense interest from HNIs and family offices for Series II.”
Key Focus Areas for Series II
Mehekka Oberoi Kohli, Fund Manager at IIFL Fintech Fund, elaborated on the fund’s objectives:
“Our goal with Series II is to identify and support startups that have the potential to become market leaders in their segments. Through Series I, we’ve built a track record with winners like Leegality (market leader in document signing infrastructure), Trendlyne (most used stock market analytics platform), and FinBox (fastest-growing embedded finance platform).”
The Opportunity in India’s Fintech Ecosystem
India’s fintech sector presents substantial growth opportunities, given the country’s relatively low financial services penetration across key areas like:
- Insurance
- Lending
- Neo-Banking
- Mutual Fund Assets
Compared to major global economies, India has a 3-5X gap in these segments, offering significant room for expansion and innovation.