Veefin to acquire ex-Infy execs' lending automation platform

Veefin Solutions Ltd, a supply chain fintech startup that listed on the BSE’s SME platform last year, has acquired digital lending platform EpikIndifi Software & Solutions Pvt Ltd in its third acquisition in the last three months.

Veefin will pay in a mix of cash and stock for the deal worth about ₹125 crore ($14.9 million), said Gautam Udani, co-founder and chief operating officer of Veefin.

Mumbai-based Veefin will initially acquire a 26% stake in Chennai-based EpikIndifi in the first tranche for ₹32.5 crore. It will purchase the remaining stake by March 2027, he added.

“The deal helps us increase our customer base, shorten our journey of acquiring those customers, and improve our product with their underwriting capabilities,” said Udani.

EpikIndifi, founded in 2017 by former Infosys executives, offers banks and financial institutions a suite of intelligent automation across identity, decisioning, lending and collection for retail products. Its co-founders Rajendra Awasthi, Sushmitshri Babu and Vaidyanathan Balasubramaniam will join the Veefin Group.  

Veefin, incorporated in 2020, offers technology product solutions for supply chain finance and digital lending to banks, non-banking financial institutions, fintech companies, marketplaces, and corporate houses. These solutions include end-to-end lending stack, smart credit decisioning, business intelligence, and analytics.  

Veefin floated its IPO last year and listed on the SME platform in July, selling shares at ₹82 apiece. Its shares touched a high of ₹753.90 last week, before paring some gains. The shares closed at ₹682.55 apiece on Monday, giving the company a market valuation of ₹1,540.72 crore.

The company said that it expects to grow the number of its clients from 55 to over 500 with the latest acquisition. The purchase will also help it add new revenue streams by offering retail lending technology.  

Veefin is spending ₹400 crore in cash and stock for inorganic bets, including on the purchase of EpikIndifi, to expand its offerings and geographical presence.

Last month, it said it was buying the Indian arm of Singapore technology firm Nityo Infotech. In June, it said it had bought a stake in Mumbai-based Regime Tax Solutions, integrating TaxGenie and PayInvoice solutions into its platform, which will include GST compliance and accounts automation.

Veefin secured about $15 million in a funding round recently, which will also help finance this acquisition, Udani said.

“We are now very focused on global expansion and also expanding ourselves beyond the realms of supply chain finance, wherein we are looking to capture the entire working capital market and become an end-to-end working capital solutions provider,” he said.