Infinity Fincorp Solutions raises $35 million in funding from Jungle Ventures, others

Infinity Fincorp Solutions, an RBI-registered nonbanking financial company, has raised $35 million in fresh funding from marquee investor Jungle Ventures, with additional participation from Archerman Capital and Magnifico.

This investment boosts Infinity’s net worth to Rs 530 crore, strengthening the company’s capacity to lend to micro-entrepreneurs often overlooked by traditional financial institutions.

Founded in 2016 by Shrikant Ravalkar, the NBFC focuses on financing small businesses in Tier III and IV cities, including tea shop owners, vegetable vendors, electricians, plumbers and small manufacturers.

Major capital boost  

The new round of funding, which received the Reserve Bank of India’s approval in October 2024, propels Infinity’s capital adequacy to 62%, well above the 15% regulatory requirement.

According to Ravalkar, who serves as founder, managing director and CEO, this positions the company to serve more small businesses in need of credit.

He noted that with the fresh capital, Infinity surpassed Rs 1,000 crore in assets under management (AUM) in November 2024, reflecting 33% growth since March 2024. The NBFC aims to expand its AUM to Rs 1,300 crore by the end of March 2025.

Committed to underserved businesses 

Infinity operates in eight states through a network of 120 branches and has disbursed Rs 562 crore over the last 12 months. Ravalkar explained that India’s MSME sector faces a potential credit gap of Rs 78 lakh crore, a challenge Infinity seeks to address.

By strengthening its in-house capabilities and leveraging growth capital, the company hopes to reach more underserved micro-entrepreneurs and small manufacturers across the country.

Jungle Ventures partner for India investments, Arpit Beri, said the firm’s decision to “double down” on Infinity comes from the NBFC’s disciplined approach and strong portfolio quality, which stand out even when the broader market faces challenges.

Infinity reported Rs 26 crore in profits for the 2023-24 fiscal year and forecasts a rise to Rs 47 crore for 2024-25. Ravalkar is confident that this growth will continue, fueled by the newly raised funds and the company’s commitment to lending to small businesses that remain underserved by large financial institutions.