LivFin, the Gurgaon based digital lending non-banking finance company (NBFC) focused on supply chain financing announced on Wednesday (November 4th) that it has received INR 35 crore in investment from existing investors, DEG.

The Germany based development lender had earlier invested $5 million in 2019. LivFin intends to utilize the fresh infusion of capital to expand its reach within the country.

"The equity investment of DEG underlines the resilience of our business model apart from signaling emergence of supply chain finance as a potent financial sector

investment option for investors. The equity infusion also signals the emergence of supply chain finance as a potent financial sector investment option for investors.

After weathering the pandemic impact, we are now well-positioned to accelerate our efforts to address credit-under penetration in the MSME sector with our customized and differentiated offerings," said Rakesh Malhotra, Founder, LivFin.

Founded in 2018, LivFin provides invoice-based short-term loans with a maturity of 30 to 180 days to help SMEs address their working capital needs. It provides tailor-made financing solutions for MSMEs covering the entire value chain including distributors, dealers, and vendors.

Promoted by SAR Group, the company works with companies across verticals such as energy, IT distribution, IT peripherals, logistics, car accessories and automation, agriculture, and e- commerce among others. In 2019 LivFin had closed INR 1 billion in Assets Under Management (AUM) and the firm is working towards increasing that value to INR 4bn in 2020.

"We are convinced that LivFin has the potential to catalyse the advancement of the SME sector in this country,” said Felix Schneider, Vice President, DEG in a statement.