MSME Lender Indifi Technologies Records 60% Growth Despite Profit Decline

Indifi Technologies has reported a robust 60% year-on-year growth for fiscal year 2024, with revenue from operations climbing to Rs 317 crore from Rs 198 crore in the previous year. The small business lender, specializing in providing financing solutions to underserved MSMEs, continues its strong trajectory after doubling its scale and achieving profitability in FY23.

According to consolidated annual results filed with the Registrar of Companies (RoC), the company's total revenue reached Rs 341 crore in FY24, up from Rs 213 crore, including Rs 24 crore from interest and miscellaneous sources.

Indifi's business model focuses on extending credit to small enterprises in the travel, hospitality, e-commerce, restaurant, trading, and retail sectors—segments that traditionally struggle to access institutional financing. The company generates revenue primarily through processing fees on loan disbursals and service fees from lending partners for origination, servicing, and collection activities.

Despite impressive revenue growth, Indifi's profitability dropped to Rs 2.7 crore in FY24 from Rs 5.1 crore in FY23. This decline stems from a 65% increase in total expenditure, which reached Rs 335 crore compared to Rs 203 crore in the previous year. The company spent Rs 1.06 to earn each rupee of revenue.

Significant expense categories, which had major increases are as follows:

• Interest costs, which rose 62.1% to Rs 107 crore, representing 32% of total expenses
• Bad debt write-offs, which more than doubled to Rs 45 crore
• Employee benefit costs, which increased 28.6% to Rs 72 crore

The surge in bad debt expenses reflects challenges in maintaining loan quality while rapidly scaling operations across Indifi's expanding small business lending portfolio.

By fiscal year-end, Indifi reported total current assets of Rs 1,169 crore, including Rs 232 crore in cash and bank balances. The company has disbursed over 100,000 loans to date, partnering with more than 80 active financial institutions and serving small businesses across 400+ cities nationwide.

Indifi has secured over $80 million in funding throughout its journey, including a $35 million Series E round led by ICICI Venture with participation from existing investors. According to TheKredible, the CDC group remains Indifi's largest external investor, followed by Accel and Omidyar Network.