Veefin's Acquisition Spree in India: Expanding Beyond Supply Chain Finance

Veefin Group of Companies, a digital supply chain finance and lending platform, has made a strategic move to solidify its presence in the Indian market. In a significant development, Veefin has acquired EpikIndifi, a digital lending company, in a cash and equity swap deal valued at approximately INR 125 crore.

• This acquisition represents Veefin's third in just three months, demonstrating its aggressive growth strategy in India.
• Veefin aims to transform from a digital supply chain finance provider to an end-to-end working capital finance platform.

EpikIndifi: A Leading Player in Digital Banking Solutions

Founded in 2017, EpikIndifi specializes in providing digital banking solutions for financial institutions in India. Their offerings include products like Business.ezee, Identity.ezee, Lend.ezee, and Collect.ezee, which focus on intelligent decision-making, process optimization, and operational efficiency.

• EpikIndifi boasts partnerships with over 55 banks, offering solutions across personal loans, BNPL schemes, mortgage loans, and more.
• With offices in Chennai, Bangalore, Melbourne, Sydney, and Singapore, EpikIndifi will expand Veefin's reach into new geographies.

Addressing the Credit Gap in India's Supply Chain Finance Sector

The acquisition highlights Veefin's commitment to addressing the significant credit gap in India's supply chain finance sector, which is estimated to be around INR 20-25 trillion. This move aims to improve access to working capital finance for small and medium enterprises (SMEs) in India.

• Veefin's ambition is to become the global leader in working capital finance.
• The company believes that the combined expertise of Veefin and EpikIndifi will create a powerful force in the Indian fintech landscape.

Veefin's Growth Strategy: Building a Comprehensive Fintech Ecosystem

Veefin's acquisition spree began in June 2023 with Regime Tax Solutions, a GST compliance and accounts automation company. This was followed by the acquisition of Nityo Infotech's India arm in August 2023. These three deals represent an outlay of INR 215 crore, with the companies' combined valuations reaching around INR 400 crore.

• Veefin's strategic acquisitions are aimed at building a comprehensive fintech ecosystem that provides a wide range of solutions to meet the evolving needs of businesses in India.
• By integrating its services with EpikIndifi's digital banking solutions, Veefin aims to provide seamless access to business loans, working capital finance, and other financial services.

The Future of Digital Lending in India

This acquisition marks a significant step forward for Veefin in its mission to become a leading player in the digital lending ecosystem in India. The company's focus on providing innovative solutions to SMEs, combined with its commitment to expanding its reach, positions Veefin for continued growth and success in the rapidly evolving fintech landscape.

• Veefin's strategy of acquiring companies with complementary expertise is expected to drive innovation and efficiency in the Indian fintech sector.
• The company's commitment to leveraging technology to simplify financial processes for businesses is likely to have a significant impact on the future of digital lending in India.