Infinity Fincorp chief executive Shrikanth Ravalkar told ET that the second tranche happened post pending approvals from the Reserve Bank of India, which came in October 2024.
Overall, in this round, the NBFC secured $35 million in equity funding.
After the close of this round, Infinity Fincorp’s valuation soared to around $150 million.
The company, incorporated in 2016, operates through a network of physical branches offering micro loans against property to small businesses like shop owners, skilled blue collar workers such as barbers, plumbers and cattle owners, and dairy farmers.
It has assets under management of Rs 1,100 crore and has set a target to take it to Rs 2,400 crore by end of this financial year.
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“Our entire book is secured, our borrowers take loans from us for house renovation, building new structures over their existing buildings, shop expansion, business expansion and such,” said Ravalkar.The NBFC offers loans with an average ticket size of Rs 4 lakh and has served more than 50,000 borrowers since inception.
“To ensure that our loans are repaid on time we do not give the loan to only one member of the family. but we take three to four co-applicants who are all adult family members of the borrower. This way we can ensure that we always have a point of contact at the time of collections,” Ravalkar said.
The company operates through a network of 130 branches and 1,550 employees, mostly focused on sales. The business is focused on the southern part of the country across Tamil Nadu, Andhra Pradesh and Telangana, with some presence in Karnataka.
The company closed 2023-24 with a net profit of Rs 25.7 crore and total revenue of Rs 143.7 crore. Ravalkar said that he has set a target of taking the book to Rs 4,000 crore by March 2027 and eventually list on the stock exchanges in 2027-28.
Infinity Fincorp competes with one of the largest NBFCs in this segment, Chennai-based Five-Star Finance which went public in 2022 and has a market capitalisation of Rs 21,181 crore.
