Mumbai-based fintech firm Veefin buys 26% stake in EpikIndifi

Mumbai-based fintech firm Veefin has acquired a 26% stake in EpikIndifi, a software solution provider for banks and financial institutions. 

The deal, which was executed through a cash-and-share swap transaction, has valued EpikIndifi at Rs 125 crore.

This is Veefin’s third acquisition this year. Earlier in June, the company acquired Regime Tax Solutions (popularly known for its products TaxGenie and PayInvoice) and the Indian arm of global technology firm Nityo Infotech in August. 

Subscribe to our newsletter for a daily roundup of the startup ecosystem

Veefin to expand ownership 

Veefin's long-term plan is to expand its ownership in EpikIndifi beyond the current 26%. The company said that it will invest Rs 25 crore into EpikIndifi over the next two to three years and aims for a complete acquisition.

“Banks, financial institutions and corporates are showing tremendous appetite for digital transformation, particularly to drive access to formal credit across small and medium businesses that are engines of growth in emerging economies for domestic and international trade," said Raja Debnath, Chairman & Co-Founder of the Veefin Group of Companies.

"Yet credit continues to be the biggest challenge – the gap in supply chain finance is India alone is pegged at Rs 20-25 Tn. Over the last few years, we have been at the forefront of deploying the best of innovation at scale in digital supply chain finance. We are now aggressively expanding to offer solutions across the entire universe of working capital, thereby emerging as Global No.1 Working Capital Finance Platform," Debnath added.

EpikIndifi team joins Veefin Group

As part of the deal, EpikIndifi’s founding team—Rajendra Awasthi, Sushmitshri Babu, and Vaidyanathan Balasubramaniam, all former senior executives at Infosys—will join Veefin along with their team.

Their expertise is expected to complement Veefin’s existing platform, particularly in expanding digital retail lending offerings, including personal loans, green loans, buy-now-pay-later (BNPL) schemes, credit cards, mortgage loans, and SME loans.

With EpikIndifi, Veefin will now add new revenue streams through digital retail lending across personal loans, green loans, BNPL schemes, credit cards, mortgage loans and SMEs loans in addition to its existing heft in working capital solutions. 

Benefits of the Acquisition

Veefin’s acquisition of EpikIndifi is expected to help the company grow its revenue streams. In addition to working capital solutions, Veefin now gains access to EpikIndifi's retail lending solutions. 

EpikIndifi offers banks and financial institutions a suite of intelligent automation across identity, decisioning, lending and collection for retail products.

The inorganic growth opportunities are estimated to increase the Veefin Group’s clientele of banking, financial institutions and corporate clients manifold - from 55 in the last financial year to over 500 by the end of this financial year.

"We will continue to be on a hyper growth stage, bringing the best-in-class technology solutions and leadership for the banking and financial institutions that sets us truly apart in the market. The latest acquisition further consolidates our position as market leaders in the digital lending ecosystem. EpikIndifi’s leadership has a rich experience in the lending and retail loan segment, and we are extremely delighted to have them onboard our mission," said Gautam Udani, Co-Founder & COO of the Veefin Group of Companies.

What does Veefin do?

Founded in 2020 by Raja Debnath and Gautam Udani, Veefin provides supply chain financing solutions and white-labeled technology for financial institutions, fintech, B2B marketplaces, and corporates globally.

The company claims to have facilitated $25 billion worth of supply chain financing through its platform.