Merger and Acquisition

Veefin Makes Third Acquisition This Year with Digital Lending Platform EpikIndifi for Rs 125 Crore

• ByStartupStory     |    September 17, 2024

Veefin Group of Companies (Veefin), a digital supply chain finance and lending platform, has made its third acquisition this year with the purchase of EpikIndifi, a digital lending company. The deal, valued at approximately Rs 125 crore, was completed through a cash and equity swap. This move is part of Veefin’s strategy to transition from being a digital supply chain finance provider to an end-to-end working capital finance platform.

The acquisition of EpikIndifi follows Veefin’s earlier purchases of GST compliance and accounts automation firm Regime Tax Solutions in June, and the Indian arm of global technology company Nityo Infotech in August. These three acquisitions combined have a total valuation of around Rs 400 crore, with the first tranche of payments expected to be Rs 215 crore, financed through cash and equity.

Veefin’s Co-Founder and COO, Gautam Udani, explained the importance of this acquisition in accelerating the company’s growth. “For the company to become a working capital finance provider and acquire an additional over 50 customers would have taken three to four years. EpikIndifi’s acquisition has reduced that gestation period at one go,” Udani said in an interview with FE Aspire.

EpikIndifi is known for its loan origination platform, which enables banks and financial institutions to streamline their operations with a cloud-based system. Its current client list includes major players like Jio Financial Services, IDBI Bank, and Vistaar Finance. Post-acquisition, EpikIndifi’s co-founders—Rajendra Awasthi, Sushmitshri Babu, and Vaidyanathan Balasubramaniam—have joined Veefin.

With this acquisition, Veefin expects significant growth in its customer base and workforce. “The inorganic growth opportunities are estimated to increase the Veefin Group’s clientele of banking, financial institutions, and corporate clients from 55 in the last financial year to over 500 by the end of this financial year. Our employee base will also increase from 198 to over 1,100 within this year,” Udani added.

EpikIndifi brings with it new revenue streams for Veefin, expanding the company’s offerings beyond its core working capital solutions to include digital retail lending, such as personal loans, green loans, Buy Now Pay Later (BNPL) schemes, credit cards, mortgage loans, and SME loans.

EpikIndifi’s CEO and Co-Founder, Rajendra Awasthi, expressed excitement about joining Veefin: “Being part of the Veefin Group of Companies is a formidable opportunity for EpikIndifi to bring a truly differentiated experience for our customers. The company has an incredible suite of solutions that will power banks and financial institutions to bring digital transformation at scale. We are extremely delighted to join hands with them in this mission.”

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