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.