Indifi Turns Profitable In Q1 FY23

Indifi Technologies has today announced that it has recorded its first profitable quarter in Q1 FY23. In FY22, coming out of COVID, the company had cautiously begun accelerating its growth and had more than doubled its lending book. The momentum has been carried forward into FY23, with the company reporting successive months of record disbursal growth in Q1. 

Indifi’s partnerships with digital ecosystems and the launch of new credit programs, which serve a broader spectrum of segments have been the key levers of growth. The growth in disbursals continues to come on the back of a tightened credit criteria, increase in avg. ticket size, tenor and with margin improvement. This was made possible through sustained investments in risk analytics, ramping up Machine Learning (ML) capabilities and constant alignment with data-led industry-specific scorecards (developed in-house) to evaluate the credit worthiness of SME borrowers. 

Moreover, the ability to sharply discriminate, rank and order risk for each disbursal has underpinned important business decisions like the choice of segments for growth, controlling the quality of acquisition and NPAs / credit losses. As a result, Indifi has ensured collection efficiency of over 98 per cent and NPA has been maintained below 1 per cent.

Indifi’s long standing partnerships with leading digital ecosystems across segments (E-commerce, Retail, Food, Travel, Payments, etc.) include marquee names such as Amazon, Fiserv, Flipkart; Swiggy; Google; Meesho; Meta, Myntra, among many others. In parallel, on the supply side, the number of banks and NBFCs that now rely on the company’s scoring models to extend credit to the end borrower, have also been growing on the platform. Some of the recent additions to the list have been SIDBI, IDFC First Bank, DMI Finance, U-Gro Capital, InCred, IIFL Finance, ABFL to name a few.

Commenting on this milestone, Aditya Harkauli – Chief Business Officer, Indifi shared, “We aim to meet customer needs, profitably. Growth and profitability metrics, in tandem, remain the measures of success for us. Embedded in this approach is the inalienable and self-evident need to calibrate and control credit losses as well. Going ahead, we hope to grow at a faster clip - aiming to double our book year on year with progressive improvement in our ROTA / ROE figures. We will rely on the expansion and deepening of our network of digital partnerships and lenders; and continually invest in new products along with, as it is important enough to state more than once, our risk management capabilities”.