IIFL Group’s early-stage investment vehicle – IIFL Fintech Fund – has announced its first exit. The fund has completely sold its stake in TrustCheckr, a fraud detection platform that was added to the portfolio in March 2022 to Truecaller – global leader in communication and spam detection. IIFL Fintech Fund has delivered 80% Return to its investors through this exit in just 18 months.
IIFL Fintech Fund was established in August 2021, with a corpus of Rs.210 crore and sponsorship from two group companies – IIFL Finance and IIFL Securities. The fund is one of the most active investors in early–stage Fintechs in the past two years with 13 investments including Trendlyne, Leegality, FinBox, DataSutram, Multipl, Finarkein, TrustCheckr, Finvu, Insurance Samadhan and EasyRewardz.
Ms. Mehekka Oberoi, Fund Manager, IIFL Fintech Fund said, “Our focus since inception has been on partnering with our investee companies and act not just as investors. We partner with our investee companies for product development and business growth. Our belief is that partnership approach serves best interest of all stakeholders. With TrustCheckr also, we went beyond the business aspect to enhance their overall product and platform to ensure business adoption. Attaining an 80% IRR and ensuring early liquidity to our investors (in less than 18 months) underscores our commitment to ensuring our investors make maximum returns.”
When we invested in TrustCheckr, they showed immense promise, but were still relatively undiscovered by a lot of investors. Our investment thesis was built on thorough research, a deep understanding of the industry, and a belief in the company’s growth potential, said Oberoi.
TrustCheckr was founded by Shivraj Harsh and Adhip Ramesh, which through a SaaS platform helps businesses verify customer information and detects risk of fraud based on phone numbers and digital signals. TrustCheckr is used by many banks, non-banking financial companies and Fintechs.
Adhip Ramesh, Co-Founder, IIFL Fintech Fund said, “IIFL Fintech Fund has been instrumental in our product development and enhancing business growth strategy. They played a vital role in the fund raising and M&A process.”
IIFL fintech fund has deployed most of its capital within just two years of its establishment. Fund’s investment philosophy is to partner and help companies focus on sustainable business growth. IIFL Fintech Fund works with founders that leverage emerging technologies to build fintech companies that have potential to disrupt businesses. The fund is over weight on enabling tech thesis. Digital lending and digital payments continue to be the area of interest for the fund.
IIFL Fintech Fund is an extension of #IIFLDisrupt program launched by IIFL Group in 2020 that aimed to provide financial, mentoring and business support to solution oriented Fintechs, as pandemic affected the economy and start-up space.
