IIFL Finance, an Indian non-banking financial company, has raised $100 million in funding from Export Development Canada and Deutsche Bank. The company plans to use the funds to support the growth of its micro, small, and medium-sized enterprises (MSME) lending business. The funding will also help the company to expand its loan offerings to include affordable housing and gold loans. The funding comes at a time when the Indian financial sector is facing challenges due to the economic slowdown caused by the COVID-19 pandemic. Despite this, IIFL Finance has continued to grow and expand its business. With the latest funding, the company aims to further strengthen its position in the market and support the growth of MSMEs in India.
IIFL Finance has been focusing on MSME lending and has been actively expanding its loan offerings in this segment. The company believes that the MSME sector is a critical driver of economic growth in India and has the potential to create a large number of jobs in the country. However, the sector has been facing challenges in accessing credit, especially from traditional lenders. IIFL Finance aims to address this gap by providing customized loan solutions to MSMEs, including short-term working capital loans, term loans, and asset-based financing.
The funding from Export Development Canada and Deutsche Bank will provide a boost to IIFL Finance’s efforts to expand its MSME lending business. The company has been rapidly expanding its presence in this segment, with a focus on reaching out to customers in smaller towns and cities across India. With the latest funding, the company aims to further accelerate its growth in this segment and become a leading player in the MSME lending space.
Overall, the funding from Export Development Canada and Deutsche Bank is a significant development for IIFL Finance and underscores the growing interest of international investors in India’s financial sector. Despite the challenges posed by the pandemic, the company has been able to raise funds and continue its expansion plans. This bodes well for the Indian financial sector as a whole, which is expected to play a critical role in supporting the country’s economic recovery in the post-pandemic era.
