In a significant development for India’s fintech sector, Mumbai-based Veefin Group of Companies has successfully raised ₹136 crore ($16 million) in its latest funding round, while simultaneously announcing plans for an additional ₹155 crore ($18 million) fundraise by January 2025. This substantial capital injection, secured from capital market investors, marks a pivotal moment in the company’s growth trajectory and its mission to revolutionize supply chain finance technology.
The funding comes at a strategic time for Veefin, which has been actively expanding its portfolio through strategic acquisitions. The fresh capital will be deployed across three key areas: accelerating product development initiatives, funding future acquisitions, and supporting the company’s ambitious global expansion plans.
Raja Dutta, CEO of Veefin Group, commented on the development: “This funding round represents a strong vote of confidence in our vision to transform supply chain finance through technology. With these resources, we’re well-positioned to accelerate our growth and continue delivering innovative solutions to our banking partners and their end customers.”
The company has demonstrated its aggressive growth strategy through recent strategic acquisitions. In a notable move, Veefin acquired EpikIndifi, a banking-focused software solutions company, in a cash and equity swap deal valued at ₹125 crore. This acquisition was followed by the purchase of Regime Tax Solutions, a GST compliance and automation platform, in June 2023. Further strengthening its technology capabilities, the company acquired Nityo Tech, the India arm of Singapore-based Nityo Infotech, in August 2023.
These strategic acquisitions have significantly enhanced Veefin’s technological capabilities and expanded its service offerings. The company’s white-labeled supply chain finance and digital lending solutions now provide an end-to-end stack that covers everything from customer onboarding to transaction management and collections processes.
A senior banking sector analyst from a leading consulting firm noted: “Veefin’s rapid expansion and strategic acquisitions position it uniquely in the supply chain finance technology space. Their ability to secure significant funding in the current market conditions speaks volumes about their business model and growth potential.”
The numbers tell a compelling story of Veefin’s market presence and impact. The company’s platform currently processes annual disbursements of $30 billion, serving a prestigious client base that includes major private sector banks such as IndusInd Bank, Yes Bank, and twelve public sector banks. This extensive network has established Veefin as a key player in India’s financial technology landscape.
For Tamil Nadu’s startup ecosystem, Veefin’s success and expansion plans present significant opportunities. The company’s growth trajectory could pave the way for increased collaboration with Tamil Nadu-based financial institutions and technology companies, potentially creating new employment opportunities and fostering innovation in the region’s fintech sector.
The planned additional fundraise of ₹155 crore by January 2025 is expected to further accelerate Veefin’s growth plans and strengthen its position as a leading technology partner for banks, financial institutions, and corporates in the working capital solutions space. This upcoming funding round will particularly focus on scaling the company’s innovative product portfolio and expanding operations across its recently acquired companies, including Tax Genie, ezee.ai, and Walnut.AI.
