Hyderabad’s NBFC Firm Vivifi Raises $75M in Series B Funding

Hyderabad-based Non-banking Financial Company (NBFC) Vivifi India Finance Private Limited has raised $75 million in a Series B funding round

Overview:

• Hyderabad-based Non-banking Financial Company (NBFC) Vivifi India Finance Private Limited has raised $75 million in a Series B funding round.
• The funding includes a mix of debt and equity from a US-based investor, BP IN VPF LLC.
• The round comprises $15 million in equity, valuing the firm at $150 million, with the remainder as debt.

Expansion and Growth Plans:

• Vivifi plans to use the investment to significantly expand its operations, aiming to increase its workforce from 700 to over 2,000 employees in the next 12-18 months.
• The firm intends to establish multiple offices across tier-II and tier-III cities, particularly in Telangana and Andhra Pradesh, as part of its nationwide expansion strategy.

Target Market and Products:

• Founded in 2016, Vivifi focuses on providing credit access to underserved communities in India.
• The firm claims to have disbursed over Rs 1,000 crore to more than five lakh customers, primarily targeting those earning less than Rs 30,000 per month in smaller cities.
• Vivifi’s flagship products, FlexPay and FlexSalary, offer digital credit card experiences and emergency lines of credit to underserved segments.

Financial Performance:

• Vivifi reported a revenue of Rs 166 crore in FY23, with a Profit After Tax (PAT) exceeding Rs 16 crore.
• The company expects to nearly double its revenue to north of Rs 250 crore in FY24.
• Despite the heavy growth phase, the PAT might not see a significant increase.
• The firm plans to disburse over Rs 3,000 crore in the current fiscal year.

Strategic Goals and Expansion into MSME Segment:

• Anil Pinapala, founder and CEO of Vivifi, highlighted the company’s strategic goals.
• Vivifi plans to expand into the MSME segment and add new products, including financial management features for existing customers.