Delhi-based fintech startup LivFin has raised ₹35 crores from Germany-based financial institution DEG which is a subsidiary of KfW Group.
The startup plans to use the freshly raised capital to expand its operations and meet its target of $40 million in AUM by March 2020. The investment will boost the planned growth over the next 12-18 months.
Founded in 2017, the non-banking financial company offers small business loans, supply chain finance and working capital loans to small and medium enterprises in the country. LivFin also offers collateral-free credit to small business owners who work with mid-sized corporates.
The NBFC also provides invoice finance solutions to SMEs through very short-term business loans, for 30 to 180 days. These loans are aimed to help businesses procure working capital for immediate operations. Some more financial products available by the company are purchase invoice finance, sales invoice finance and working capital loans for SMEs.
The startup has already built a live book of over $20 million and has disbursed more than $150 million in loans The startup works across multiple sectors and industries. The financial institution has raised ₹98 crores in funding from nine lenders.
LivFin also introduced its co-lending structure with other NBFC where the co-lender provides 80% of the funding and LivFin provides a balance of 20%. The management and onboarding are handled by LvFin using its technology for a fee. According to the company, this structure allows it to further leverage its funds to provide financing to a significantly broader consumer base.
The startup competes with Bengaluru-based invoice-discounting platform KredX which recently raised ₹187 crores in its Series B funding from US-based venture capital firm Tiger Global Management. LivFin, on the other hand, is backed by the family office of Rakesh Malhotra.
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