Mumbai-based fintech firm Veefin has acquired a 26% stake in EpikIndifi, a software solutions provider for banks and financial institutions.
The deal, which was executed through a cash-and-stock swap transaction, valued EpikIndifi at Rs 125 crore.
This is Veefin’s third acquisition this year. In early June, the company acquired Regime Tax Solutions (known for its TaxGenie and PayInvoice products) and the Indian arm of global technology firm Nityo Infotech in August.
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Veefin to expand stake
Veefin’s long-term plan is to expand its stake in EpikIndifi beyond the current 26%. The company said it will invest Rs 25 crore in EpikIndifi over the next two to three years and is targeting a full acquisition.
“Banks, financial institutions and corporates are showing huge appetite for digital transformation, especially to enable access to formal credit for small and medium enterprises which are engines of growth in emerging economies for domestic and international trade,” said Raja Debnath, Chairman and Co-Founder, Veefin Group of Companies.
“Credit, however, remains the biggest challenge: the supply chain finance gap in India is estimated at Rs 20-25 trillion. Over the last few years, we have been at the forefront of scaling up the best of digital supply chain finance innovation. We are now aggressively expanding to offer solutions across the working capital space, becoming the No.1 global 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 Infosys executives – 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) programs, credit cards, mortgages and SME lending.
With EpikIndifi, Veefin will now add new revenue streams through digital retail lending across personal loans, green loans, BNPL schemes, credit cards, mortgages and SME loans, in addition to its existing strength in working capital solutions.
Benefits of acquisition
Veefin’s acquisition of EpikIndifi is expected to help the company expand its revenue streams. In addition to working capital solutions, Veefin now has access to EpikIndifi’s retail lending solutions.
EpikIndifi offers banks and financial institutions an intelligent automation suite spanning identity, decisioning, lending and retail collections.
Inorganic growth opportunities are expected to double Veefin Group’s client base of banks, financial institutions and corporate clients from 55 in the last financial year to over 500 by the end of this financial year.
“We will continue to be in a hyper-growth phase, bringing best-in-class technology solutions and leadership to banking and financial institutions that truly differentiate us in the market. The latest acquisition further solidifies our position as a market leader in the digital lending ecosystem. EpikIndifi’s leadership has a wealth of experience in the retail lending and lending space, and we are extremely excited to have them on board for our mission,” said Gautam Udani, Co-Founder and COO, Veefin Group of Companies.
What does Veefin do?
Founded in 2020 by Raja Debnath and Gautam Udani, Veefin provides supply chain finance solutions and white label technology for financial institutions, fintech, B2B marketplaces and enterprises globally.
The company claims to have facilitated $25 billion in supply chain finance through its platform.