SME-focused LivFin nets venture debt from BlackSoil

LivFin India Pvt. Ltd, a financial technology firm focused on small and medium enterprises (SMEs), has secured $2 million (Rs 14.8 crore) venture debt from BlackSoil. 

Rahul Chander, CEO, LivFin, said in a statement that the investment from BlackSoil has validated its processes that use technology to distribute credit. 

LivFin, which began operations in 2018, has raised more than $35 million in debt from more than 15 lenders till date, the statement said. 

It has disbursed over $285 million so far and claims there have been no write-offs. The company aims to disburse more than $85 million in the next financial year, beginning April 1. 

The Delhi-based fintech non-banking financial company (NBFC) LivFin offers supply chain finance to mid-to-large corporates by setting up programs to lend to their suppliers, vendors and distributors, dealers and retailers through an ‘anchor’-based financing model. 

The statement further said that currently the value of supply chain finance in India is Rs 60,000 crore which is less than 10% of the addressable market. 

In 2019, LivFin had raised $5 million (about Rs 35.51 crore) in equity funding from German development finance institution DEG. This was DEG’s first investment in India’s fintech segment. 

“We are thoroughly impressed with LivFin’s end-to-end tech-enabled underwriting and collection processes supplemented with a unique Anchor-based business model and look forward to supporting them in growing their portfolio,” said Ankur Bansal, Co-Founder of BlackSoil. 

BlackSoil, which manages an alternative credit platform, said it has deployed over $215 million across more than 100 deals. Some of its major investments in startups include business-to-business (B2B) e-commerce startup Udaan, marketplace for construction materials Infra. Market, and beauty marketplace Purplle.

Source: VCCircle