Indifi Technologies, a digital lending platform catering to MSMEs, has said it has turned profitable for the first time during Q1FY23. However, no numbers were disclosed.
Alok Mittal, co-founder and CEO, said the business is well capitalised at Rs 380 crore and there is no immediate plan to raise capital privately or via an initial public offering.
Accel Partners, Omidyar, British International Investment and CX Partners are among the investors in the company.
Mittal said the scale of the business and the refinement in the credit model have helped the business turn profitable and credit costs have come down. “Our gross NPLs at this time last year were about 5% and now we are at less than 2% while net NPLs are sub-1%,” Mittal said.
Indifi’s AUM at the end of March stood at Rs 770 crore and the company hopes to grow at 80-100% in FY23. At the end of June, the AUM was Rs 950 crore. The company disbursed Rs 335 crore during the June quarter. While 45% of the loans are on the balance sheets of lenders, 55% of loans are on Indifi’s balance sheet.
Indifi’s spreads are typically around 11-12% as it borrows at 12-13% and lends at 24%. The ticket sizes for loans have increased from Rs 4 lakh three years back to around Rs 7 lakh now.
Among new products that the company introduced last year is automated loans. Mittal said these are essentially small-ticket loans of around Rs 2.5-3 lakh and get serviced faster.