IIFL Fintech Fund Closes Series-II at INR 200 Cr to Fuel Next-Gen Fintech Startups The fund aims to invest in the next generation of Indian fintech startups, with a special focus on generative artificial intelligence (AI) in the financial services space.
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IIFL Fintech Fund, a leading early-stage fund dedicated to the fintech sector, has announced the successful closure of its second fund, IIFL Fintech Fund – Series – II, after raising INR 200 crore from top family offices, UHNIs, and HNIs.
The fund aims to invest in the next generation of Indian fintech startups, with a special focus on generative artificial intelligence (AI) in the financial services space.
Prakash Bulusu, Joint CEO of IIFL Capital Services limited said, "We have seen very good response from HNIs, UHNis and family offices for our IIFL Fintech Fund Series – II. Considering that India's fintech is the only segment which is expected to grow 11X vs Indian online retail and Indian consumer tech where the expected growth is 3X and 5.8X respectively, the interest received for the fund was palpable."
"With our deep connection with Indian's top wealth creators, we understand their niche investment needs in alternative fund management space. This helps us to give curated offerings like the IIFL Fintech Fund, which continues to attract investor eyes for its successful track record and investment philosophy," he added.
Since its inception in 2021, the IIFL Fintech Fund has made 14 strategic investments across various fintech segments, including Leegality, FinBox, DataSutram, Finarkein Analytics, Finvu, Trendlyne, Insurance Samadhan, Xtracap Finance, Castler, Vitra.Ai, EasyRewardz, Multipl, Riskcovry, and TrustCheckr (sold to True Caller).
As per the official statements, the portfolio has delivered an impressive 22.5X revenue growth over three years, with 40% of the companies achieving EBITDA positivity and zero write-offs.
Mehekka Oberoi Kohli, Fund Manager, added, "Through Series – I, we've built a portfolio of winners like Finvu, the market leader in account aggregation, and Trendlyne, the most-used stock market analytics platform. With Series – II, we're doubling down on generative AI, which is set to revolutionize financial services," she said.
India's fintech ecosystem presents a massive opportunity, with financial services penetration still low compared to major economies. The gap in insurance, lending, neo-banking, and mutual fund assets is 3-5X, creating ample room for growth.
As IIFL Fintech Fund – Series – II gears up to back innovative startups, it aims to bridge this gap and fuel the next wave of fintech innovation in India. With generative AI gaining momentum, the fund is well-positioned to identify and nurture the disruptors shaping the future of financial services.
