IIFL Fintech Fund invests Rs 25 crore in Xtracap Fintech for a 51% stake
Mehekka Oberoi, Fund Manager at IIFL Fintech Fund, highlighted the vast potential of the supply chain finance market in India, emphasizing Xtracap Fintech’s strong technological foundation and impressive track record. She expressed excitement about the partnership and its potential to expand the company’s reach to more MSMEs (Micro, Small, and Medium Enterprises). Mohammed Riaz, CEO of Xtracap Fintech, expressed enthusiasm about the capital injection from IIFL Fintech Fund, foreseeing it as a catalyst for accelerated growth and broader MSME outreach. He emphasized Xtracap Fintech’s commitment to providing innovative and accessible financial solutions to MSMEs, believing that this investment will play a pivotal role in achieving that mission.
According to PwC’s 2023 India Supply Chain Finance Market Report, the Indian supply chain finance market is on track to reach 10 trillion by 2026, with a compounded annual growth rate (CAGR) of 20%. IIFL Fintech Fund, established in August 2021 with a corpus of 210 crores, operates under the sponsorship of IIFL Finance and IIFL Securities, two group companies of IIFL. The fund focuses on early-stage fintech companies that leverage technology to address real-world challenges. Its portfolio already includes investments in companies such as Trendline, Legality, FinBox, DataSutram, Multipl, Finarkein, TrustCheckr, Finvu, Insurance Samadhan, and EasyRewardz.