IIFL Fintech Fund, one of India’s leading early-stage fintech-focused funds, has successfully closed its second fund, IIFL Fintech Fund – Series II, raising ₹200 crore. The capital was secured from top family offices, Ultra-High-Net-Worth Individuals (UHNIs), and High-Net-Worth Individuals (HNIs). The fund aims to back the next generation of Indian fintech startups, with a special emphasis on generative artificial intelligence in financial services.
Established in 2021, IIFL Fintech Fund has built a strong track record of identifying and investing in promising early-stage fintech startups. The Series I fund boasts a portfolio of 14 companies, including Leegality, FinBox, DataSutram, Finarkein Analytics, and Trendlyne, which have collectively delivered a remarkable 22.5X revenue growth over three years. Notably, 40% of the portfolio companies are EBIDTA positive, with zero write-offs to date.
Speaking about the fundraising, Prakash Bulusu, Joint CEO, 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.”
Mehekka Oberoi Kohli, Fund Manager, IIFL Fintech Fund said, “Our objective in IIFL Fintech Fund – Series – II is to continue to focus on identifying future market leaders in each of the segment that we would invest in. Through our series – I, we have been able to set up a track record which boats of winners like – Leegality (market leader in document signing infra), Finvu (highest market share in account aggregator space), Trendlyne (most used stock market analytics platform), FinBox (fastest growing embedded finance platform) among others.”
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“Through our Series – II, there is a special focus on generative AI in financial services space. Generative AI is picking up pace, and is likely aid further aid the growth of the financial services space. Backed by the over three decades of experience of our group in financial services space, we are better poised to identify the winners.”
The launch of Series II positions IIFL Fintech Fund as a key player in driving the next phase of fintech evolution in India, leveraging its expertise and network to capitalise on emerging trends.
