• LivFin and DEG had signed an investment deal last year.
  • LivFin plans to bolster the supply chain finance arm and expand its reach.
  • LivFin claims developing a loan book worth INR 175 crore and cumulatively disbursed more than INR 1,500 crore to date.

Based out of Delhi, India, LivFin, a fintech start-up, has successfully raised INR 35 crore from  DEG, a German development finance institution, a subsidiary of KfW Group.

In 2019, LivFin raised USD 5 million from DEG.

The company also said that LivFin and DEG inked an investment contract last year.

The road ahead

With the freshly acquired capital, LivFin plans to bolster the supply chain finance segment and extend its reach to the under-banked and unbanked segments of the SME sector of India.

On the economic front, the company claims to have built on a loan book worth INR 175 crore and cumulatively disbursed more than INR 1,500 crore to date. Until now, the company has obtained funding from nine lenders taking the total to USD 14 million.

The competitor list of the start-up includes names like LenDenClub, LoanCircle, KountMoney, KredX, Faircent, and Capzest.

Dr. Felix Schneider, DEG Vice President FinTechs Global Markets, said, “Especially over the last months, it has been impressive to see how digitally-enabled models with minimal physical touchpoints and advanced data-insights are paving the future of SME lending. LivFin’s approach to supply chain finance falls exactly in this category and we are convinced that it has the potential to catalyze the advancement of the Indian SME sector.”

As per a Global Fintech Report, Q1 2019, over a million borrowers and two million lenders have carried out transactions via lending platforms, with the overall exposure remaining at INR 350 crore. According to Inc42 Plus, between 2015 and Q1 2019, the total investment recorded in Indian fintech start-ups amounted to USD 7.6 billion.

The Indian digital lending market has the caliber to become a USD 1 trillion (approximately INR 71 lakh crore) opportunity in five years, as per a 2018 BCG report. Out of this, personal lending is projected to increase to a USD 50 billion market, growing at a 30% rate every year.

About LivFin

Established in 2017, LivFin is an Indian non-banking financial institution that grants supply chain finance, small business loans, and working capital loans to SMEs in India.

The fintech start-up is also involved in delivering collateral-free credit to small business owners who operate with mid-sized corporates.

Rakesh Malhotra, Founder, LivFin, states, “The equity investment of DEG underlines the resilience of our business model. The equity infusion also signals the emergence of supply chain finance as a potent financial sector investment option for investors. After weathering the pandemic impact, we are now well-positioned to accelerate our efforts to address credit-under penetration in the MSME sector with our customized and differentiated offerings.”