Infinity Fincorp Solutions, a pioneering non-banking financial company (NBFC) focused on empowering micro, small, and medium enterprises (MSMEs), has secured $35 million in funding from Jungle Ventures, Archerman Capital, and Magnifico. This capital infusion, approved by the Reserve Bank of India (RBI) in October 2024, elevates Infinity’s net worth to an impressive ₹530 crore and boosts its capital adequacy ratio to 62%. Founded by Shrikant Ravalkar in 2016, the company operates across eight states, addressing the $78 lakh crore credit gap in India’s MSME sector by providing tailored loans to underserved micro-entrepreneurs. With over 120 branches and a growing portfolio, Infinity aims to expand its assets under management (AUM) from ₹1,000 crore to ₹1,300 crore by March 2025. This strategic move underscores Infinity’s mission to empower small businesses often overlooked by traditional financial systems.
Understanding Infinity Fincorp Solutions
1. Working Model and Revenue Model
Infinity Fincorp Solutions specializes in providing unsecured and secured loans to micro-entrepreneurs and small business owners in Tier III and IV cities. The company’s target clientele includes tea stall owners, vegetable vendors, electricians, plumbers, and small-scale manufacturers. By tailoring its products to the unique needs of these underserved segments, Infinity bridges the credit gap left by traditional financial institutions. Its revenue model revolves around interest income and fees generated from loan disbursements and repayments, ensuring steady profitability.
2. Founders and Background
The company was founded in 2016 by Shrikant Ravalkar, a seasoned financial expert with decades of experience in the banking and NBFC sectors. His vision was to address the significant financial exclusion faced by micro-entrepreneurs in India. Under Ravalkar’s leadership, Infinity has built a reputation for disciplined lending practices, robust portfolio quality, and a strong focus on operational efficiency.
3. Services and Offerings
Infinity offers:
- Unsecured Business Loans: For small business owners with limited collateral.
- Secured Loans: Tailored property loans for MSMEs.
- Microfinance Services: Supporting grassroots entrepreneurs in rural areas.
The NBFC operates through a well-established network of 120 branches across eight states, enabling it to reach a diverse clientele.
Funding Background
Infinity Fincorp’s $35 million funding round marks a major milestone in its journey. Jungle Ventures led this round, with additional investments from Archerman Capital and Magnifico. This capital boost received RBI’s approval in October 2024, reflecting the company’s adherence to regulatory compliance.
- Capital Adequacy: Infinity’s capital adequacy ratio now stands at 62%, significantly higher than the 15% regulatory requirement.
- Net Worth: The funding elevates Infinity’s net worth to ₹530 crore, enhancing its capacity to lend.
Arpit Beri, Partner at Jungle Ventures, expressed confidence in Infinity’s disciplined approach and portfolio quality, stating that the decision to double down was based on the company’s strong execution capabilities in a challenging market.
Growth Trajectory
1. Asset Growth and Financial Performance
Infinity’s assets under management (AUM) surpassed ₹1,000 crore in November 2024, marking a 33% growth since March 2024. With the new funding, the company is on track to expand its AUM to ₹1,300 crore by March 2025.
In terms of profitability:
- FY24 Profit: ₹26 crore
- FY25 Forecast: ₹47 crore
2. Expanding Footprint
Infinity operates in eight states with a robust branch network and has disbursed ₹562 crore over the last 12 months. Its services target micro-entrepreneurs who face significant barriers to accessing formal credit.
Addressing India’s MSME Credit Gap
India’s MSME sector, contributing nearly 30% to the GDP, faces a credit gap estimated at ₹78 lakh crore. Infinity’s mission aligns with bridging this gap by leveraging its tailored financial products and deep market insights. By focusing on micro-entrepreneurs, Infinity aims to foster grassroots economic growth.
Learning for Startups and Entrepreneurs
- Identify Market Gaps: Infinity’s success highlights the importance of addressing underserved markets.
- Leverage Regulatory Compliance: Building trust with investors and stakeholders requires stringent adherence to regulations.
- Build Operational Efficiency: A disciplined approach to portfolio management ensures long-term sustainability.
- Focus on Customer Needs: Tailored products resonate with specific audience segments, driving loyalty and growth.
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