The lender to micro, small, and medium enterprises (MSMEs), Indifi Technologies, has reported an increase in revenue to Rs 360 crore in FY25, up from Rs 294 crore in the previous fiscal year.
However, the company's losses widened to Rs 45 crore from Rs 27 crore a year ago, according to its filings with the ministry of corporate affairs.
"Some of it is because of the deterioration in credit that we saw," Alok Mittal, founder of Indifi, told ET in an interaction. "What that means is that as we move forward, and if the loss rates are at a certain level, then we are adequately providing for those in advance... so that we are not susceptible to higher losses in the future," he added.
Total expenses stood at Rs 428.72 crore, up 23% from the previous fiscal year. The rise in expenses was led by finance costs of Rs 142 crore, compared to Rs 109 crore the previous year. Finance costs are the expenses the lender incurs on collections.
Employee costs rose to Rs 81.7 crore, compared to Rs 71.3 crore a year earlier.
This comes as fintechs chase secured lending products over unsecured ones due to a slowdown in the market and regulatory scrutiny in the unsecured loans segment. Most startups, including Kissht, Loantap, Fibe, and Kreditbee—all unsecured consumer lending players—have now built secured products such as loans against property (LAP), mutual funds, and vehicle loans, as reported by ET.
Indifi, which primarily lends unsecured MSME loans, has added two new product lines, including supply chain finance and secured lending lab business. Supply chain finance is a way to speed up payments for small suppliers based on buyer credit scores.
"Over the last 12 months, we launched two new lines of business: a supply chain finance business and a secured lending lab business," he said. The new product lines, which account for 6-7% of Indifi’s monthly disbursement, will reach 20-25% in the next three years, according to the company.
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However, the company's losses widened to Rs 45 crore from Rs 27 crore a year ago, according to its filings with the ministry of corporate affairs.
"Some of it is because of the deterioration in credit that we saw," Alok Mittal, founder of Indifi, told ET in an interaction. "What that means is that as we move forward, and if the loss rates are at a certain level, then we are adequately providing for those in advance... so that we are not susceptible to higher losses in the future," he added.
Total expenses stood at Rs 428.72 crore, up 23% from the previous fiscal year. The rise in expenses was led by finance costs of Rs 142 crore, compared to Rs 109 crore the previous year. Finance costs are the expenses the lender incurs on collections.
Employee costs rose to Rs 81.7 crore, compared to Rs 71.3 crore a year earlier.
This comes as fintechs chase secured lending products over unsecured ones due to a slowdown in the market and regulatory scrutiny in the unsecured loans segment. Most startups, including Kissht, Loantap, Fibe, and Kreditbee—all unsecured consumer lending players—have now built secured products such as loans against property (LAP), mutual funds, and vehicle loans, as reported by ET.
Indifi, which primarily lends unsecured MSME loans, has added two new product lines, including supply chain finance and secured lending lab business. Supply chain finance is a way to speed up payments for small suppliers based on buyer credit scores.
"Over the last 12 months, we launched two new lines of business: a supply chain finance business and a secured lending lab business," he said. The new product lines, which account for 6-7% of Indifi’s monthly disbursement, will reach 20-25% in the next three years, according to the company.
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