 "Vivifi India Finance raises $75 mn series B funding from US investor")
Vivifi India Finance, a fintech non-banking financial company (NBFC), has raised $75 million in a Series B funding round in a combination of debt and equity.
The Hyderabad-based company has raised $15 million in equity and $60 million in debt at a valuation of $150 million, as per people aware of the development.
While the company did not disclose the names of its investors, it said the capital comes from a leading player in specialty or alternative finance in the United States (US).
The company had raised $6 million in its Series A round previously in the financial year 2021 (FY21).
The fintech firm will use the proceeds of the funding to extend financial services to under-served communities through its products.
“The capital raised will play a pivotal role in driving forward Vivifi's mission to revolutionise financial inclusion through technology-driven credit solutions. It will further support the extension of financial services to those in under-served communities through its products, FlexPay and FlexSalary,” the company said in a statement.
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Vivifi claims to have disbursed over Rs 1,000 crore to more than 0.5 million customers during the course of the past one year. It disbursed loans to beneficiaries across India’s Tier-II and Tier-III cities.
“With this funding, we are barrelling towards achieving new heights and are hopeful of expanding our customer base to a million users in the next 12-18 months. This infusion of capital is timely as regulatory demands for enhanced capital adequacies in the unsecured lending sector intensify,” said Anil Pinapala, founder of Vivifi India.
As per the firm's statement, in FY23, the company reported a revenue of Rs 166 crore, with a Profit After Tax (PAT) of Rs 16 crore for the previous financial year. Vivifi expects to double its revenues this year while aiming to disburse over Rs 3,000 crore.
The company intends to expand its workforce to over 2,000 employees in the next 12-18 months from its existing strength of 800. It has plans to establish offices across Tier-II and Tier-III cities in Telangana and Andhra Pradesh initially, with plans for nationwide expansion.