Tuesday, September 17, Mumbai: The Veefin Group of Companies has announced its third acquisition in end-to-end digital lending platform EpikIndifi, in a cash and equity swap deal valued at around INR 125 Cr. Veefin Group has been on a major corporate expansion exercise in FY 24-25 to transform into an end-to-end Working Capital Finance Platform. The acquisitions of the three companies are at a total valuation of ~INR 400 Cr. The total expected outlay of the first tranche of all three acquisitions in the last three months is INR 215 Cr (through cash and equity).
The global SME financing gap is pegged at $14Tn. Along with the existing group companies, the latest acquisitions have powered Veefin Group to address every aspect of optimising working capital, by offering solutions across end-to end digital Supply Chain Finance, Digital Identity Verification & Automated Financial Statement Analysis, Trade Securitisation, Transaction Banking, Automated Accounts Receivable (AR) & Accounts Payable (AP) and Software Consulting and Services. Veefin Group has achieved an annual disbursement worth $25Bn on its platform.
Earlier in June, Veefin Group acquired Regime Tax Solutions (known popularly for its products TaxGenie & PayInvoice), and in August the company announced the acquisition of the Indian arm of global technology firm Nityo Infotech.
The inorganic growth opportunities are estimated to increase the Veefin Group’s clientele of banking, financial institutions and corporate clients manifold – from 55 in the last financial year to over 500 by the end of this financial year.
With EpikIndifi, Veefin will now add new revenue streams through digital retail lending across personal loans, green loans, BNPL schemes, credit cards, mortgage loans and SMEs loans in addition to its existing heft in working capital solutions. EpikIndifi offers banks and financial institutions a suite of intelligent automation across identity, decisioning, lending and collection for retail products. EpikIndifi Co-founders Rajendra Awasthi, Sushmitshri Babu & Vaidyanathan Balasubramaniam who are all ex-Infosys leaders and have over 25 years of experience in banking and software consulting, have joined the Veefin Group along with their team.
Raja Debnath, Chairman & Co-Founder of the Veefin Group of Companies, said “Banks, financial institutions and corporates are showing tremendous appetite for digital transformation, particularly to drive access to formal credit across small and medium businesses that are engines of growth in emerging economies for domestic and international trade. Yet credit continues to be the biggest challenge – the gap in supply chain finance is India alone is pegged at INR 20-25 Tn. Over the last few years, we have been at the forefront of deploying the best of innovation at scale in digital supply chain finance. We are now aggressively expanding to offer solutions across the entire universe of working capital, thereby emerging as Global No.1 Working Capital Finance Platform.”
Gautam Udani, Co-Founder & COO of the Veefin Group of Companies shared, “This has been a seminal year for the Veefin Group in building both in-house capabilities as well as leveraging inorganic growth opportunities to expand beyond supply chain finance and offer every single solution under the ambit of Working Capital Finance to our Indian and global customers. We will continue to be on a hyper growth stage, bringing the best-in-class technology solutions and leadership for the banking and financial institutions that sets us truly apart in the market. The latest acquisition further consolidates our position as market leaders in the digital lending ecosystem. EpikIndifi’s leadership has a rich experience in the lending and retail loan segment, and we are extremely delighted to have them onboard our mission.”
EpikIndifi CEO & Co-founder Rajendra Awasthi said, “Being part of the Veefin Group of Companies is a formidable opportunity for EpikIndifi to bring a truly differentiated experience for our customers. The company has an incredible suite of solutions that will power banks and financial institutions to bring digital transformation at scale. We are extremely delighted to join hands with them in this mission.”
