The CDC Group, the UK’s development finance institution, recently invested USD 15 million as part of a USD 21 million fundraising round for Indifi Technologies, a digital lender to small and medium-sized enterprises (SMEs) in India. Two US-based investors, Omidyar Network and Accel, also participated in the round, a portion of which is intended to allow Indifi to improve its risk-management systems and customer-protection protocols.
Srini Nagarajan, the Managing Director and Head of Asia at CDC, said, “Our investment will support Indifi to increase its SME lending multifold over the next five years, including to customers that are harder to reach and otherwise wouldn’t have access to growth finance. Its market-leading digital platform is advancing product design for customers and responsibly supporting the growth of thousands of SMEs, generating income for families and their local communities across India.”
Founded in 2015, Indifi is a technology platform that offers loans equivalent to USD 1,400 to USD 70,000. As of 2019, the company serves 200 cities and works with 80 partners, including lenders, data providers and others. The platform has raised a total of USD 31 million.
Since 2004, Omidyar Network has provided loans, equity investments and grants to “socially responsible” organizations active in microfinance, entrepreneurship, property rights, social media, marketplaces and government transparency. As of 2018, the network has total assets amounting to USD 494 million as well as commitments of approximately USD 780 million through its NGO arm and USD 700 million through its for-profit arm.
Accel is a venture capital firm based in Palo Alto, California. Founded in 1983, the firm typically invests in internet firms that are in the early stages of their corporate lifecycles. Accel has raised a total of USD 12.3 billion via 27 funds. The latest of these is Accel Growth Fund V Strategic Partners, which was announced in June 2019 and has raised USD 54.9 million.
Formerly known as the Commonwealth Development Corporation, CDC is a UK-based development finance institution that was created in 1948. The organization seeks to make investments in South Asia, Africa and Latin America that “support growth and jobs that lift people out of poverty, and…make a financial return.” As of 2017, the company holds a gross loan portfolio of GBP 4.3 billion (USD 5.3 billion) and has total net assets of GBP 5 billion (USD 6.2 billion). The businesses within the company’s portfolio employed approximately 734,000 individuals in the same year.
By Anna Gravois, Research Associate
Sources and Additional Resources
CDC Press Release
https://www.cdcgroup.com/en/news-insight/news/increasing-access-to-growth-finance-for-micro-and-small-businesses-in-india/?fl=true
Indifi homepage
https://www.indifi.com
Omidyar homepage
https://www.omidyar.com
Accel homepage
https://www.accel.com
CDC homepage
https://www.cdcgroup.com/
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