Digital supply chain finance and lending platform Veefin Group of Companies (Veefin) on Tuesday said it has acquired digital lending company EpikIndifi in a cash and equity swap deal valued at around Rs 125 crore. EpikIndifi is the third acquisition for the company since June this year in its efforts to expand into an end-to-end working capital finance platform from a digital supply chain finance provider.
Veefin had acquired GST compliance and accounts automation solution company Regime Tax Solutions in June this year and the Indian arm of global technology firm Nityo Infotech in August. The total expected outlay of the first tranche of all three acquisitions in the last three months was Rs 215 crore through cash and equity. The acquisitions of the three companies are at a total valuation of around Rs 400 crore.
Speaking to FE Aspire, Veefin’s Co-Founder & COO Gautam Udani said that for the company to become a working capital finance provider and acquire an additional over 50 customers would have taken three to four years. “EpikIndifi’s acquisition has reduced that gestation period at one go.”
EpikIndifi offers a loan origination platform for banks and financial institutions to streamline their customer and employee interactions within a cloud-based system. Its clients include Jio Financial Services, IDBI Bank, Vistaar Finance etc. The company’s team including co-founders Rajendra Awasthi, Sushmitshri Babu and Vaidyanathan Balasubramaniam have joined Veefin.
“The inorganic growth opportunities are estimated to increase the Veefin Group’s clientele of banking, financial institutions and corporate clients from 55 in the last financial year to over 500 by the end of this financial year. Our employee base will also increase from 198 to over 1,100 within this year,” Udani said.
With EpikIndifi, Veefin said it will add new revenue streams through digital retail lending across personal loans, green loans, BNPL schemes, credit cards, mortgage loans and SME loans in addition to its existing working capital solutions.
“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,” said EpikIndifi CEO & Co-founder Rajendra Awasthi.