ⓘ Image source: BusinessToday.in
LivFin, a Delhi-based fintech startup has recently raised $5 million to expand its operations and achieve the assets under management (AUM) target of $40 million by March 2020.
The funding came from German development finance institution DEG, a subsidiary of KfW Group.
Founded in 2017, LivFin is a non-banking financial company (NBFC) that grants small business loans, supply chain finance and working capital loans to SMEs in India. These business loans are termed for very short durations like 30 to 180 days. The fintech startup also offers financial avenues such as purchase invoice finance and sales invoice finance.
Not only that, LivFin also offers collateral-free credit to small businesses owners who work with mid-sized corporates which act as suppliers or distributors for finished products of SMEs.
LivFin is promoted by the Family Office of Mr Rakesh Malhotra, who has also promoted the SAR Group, with business interests in energy storage (LivGuard), water purification (LivPure) and has recently forayed in the emerging e-mobility market in India.
The company works with suppliers, distributors and SMEs across multiple industries and claims to have built a live book of over $20 million; and disbursed over $150 million in aggregate.
LivFin has recently started its first co-lending model with another NBFC where LivFin provides 20 percent funding and the other NBFC provides 80 percent. The model helps the startup to tap into a larger market of customers.
Rahul Chander, MD & CEO of LivFin in a statement said…
“DEG’s equity investment provides LivFin multiple positives: it’s a validation of our business model and recognition of our rapid growth, our tech-based credit and operations processes, and high governance standards,”
“It also recognizes our objectives as a financier to the un-banked / partially banked segments of the Indian economy. The investment will be a boost to our planned growth over the next 12-18 months, and makes LivFin a serious player in the supply chain finance space in India.”