Hyderabad's NBFC firm Vivifi raises $75M in debt and equity

Hyderabad-based Non-banking Financial Company (NBFC) Vivifi India Finance Private Limited has raised $75 million in a Series B funding round.

The round, which includes a mix of debt and equity from a US-based investor, BP IN VPF LLC, is composed of $15 million in equity and the remainder as debt, valuing the firm at $150 million.

Expansion and growth plans

Vivifi plans to use this investment to significantly expand its operations. The firm aims to increase its workforce from the current 700 to over 2,000 employees in the next 12-18 months.

Additionally, It intends to establish multiple offices across tier-II and tier-III cities, particularly in Telangana and Andhra Pradesh, as part of its nationwide expansion strategy.

Targeting underserved markets

Founded in 2016 by Anil Pinapala and Srinath Kompella, Vivifi focuses on providing credit access to underserved communities in India.

The firm claims to have disbursed over Rs 1,000 crore to more than five lakh customers, primarily targeting those earning less than Rs 30,000 per month in smaller cities. Its flagship products, FlexPay and FlexSalary, are designed to offer digital credit card experiences and emergency lines of credit to these underserved segments.

How well Vivifi is performing financially?

Vivifi has reported a revenue of Rs 166 crore in FY23, with a Profit After Tax (PAT) exceeding Rs 16 crore. The company expects to nearly double its revenue to north of Rs 250 crore in FY24.

However, due to its heavy growth phase, the PAT might not see a significant increase. The firm also plans to disburse over Rs 3,000 crore in the current fiscal year.

Expanding into the MSME segment

Anil Pinapala, founder and CEO of Vivifi, highlighted the company's strategic goals. Apart from building on its existing platform, Vivifi is planning to expand into the MSME segment and add new products, including financial management features for existing customers. 

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