Vivifi India Fin raises $75 mn in Series B

Hyderabad: City-based fintech NBFC Vivifi India Finance Pvt Ltd on Wednesday announced raising $75 million (Rs 600 crore) in Series B. The funding is a combination of debt and equity raised from a confidential entity in the Alternative Finance sector in the US. The funds will be utilised for the development of technology, strengthening team, disburse Rs 3,000 crore to 10 lakh customers over the next 18 months through extending existent products and introduction of new offerings for MSME’s.

The NBFC provides unsecured loans ranging from Rs 500 to Rs 2.50 lakh to salaried and self employed in the lower income bracket, under two products, FlexPay and FlexSalary. For which the interest rate is 18 to 36 per cent. Vivifi has disbursed Rs 2,500 crore till date, and Rs 1,000 crore to over five lakh customers in 2023, of which Rs 150 to 200 crore was disbursed to customers in the Telugu States. About 25 per cent of their customers are from Telangana and Andhra Pradesh. Anil Pinapala, Founder, Vivifi India Finance Pvt Ltd, said: “We want to expand credit accessibility to micro, and small entrepreneurs through tailor-made credit solutions and flexibility in repayment. With a focus on expanding operations we will be increasing owur team size from 800 to 2,000 over the next 18 months.”

Pinapala informed that they plan to raise next round of funding of an undisclosed sum in the next 18 months and also plan to go public in the next 24 to 36 months. As a provider of unsecured loans the founder said that non-performing assets at Vivifi stands at three to five per cent, “we control NPA through customer awareness campaigns, by educating them on the importance of credit discipline and good repayment behaviour,” Pinapala added.