Amid challenging industry conditions, the IIFL Fintech Fund has delivered stellar performance, according to a recent press release. Over two years old with investment in 14 startups, the fund boasts a remarkable record with none of its portfolio companies failing, and 40% EBITDA positive.
The fund has already seen one successful exit within 18 months, yielding an 80% return. The fund’s portfolio internal rate of return (IRR) stands at 24% and total value paid-in (TVPI) is 1.35x.
Post IIFL’s investment, overall the portfolio companies have witnessed over $100 million of follow-on funding and have seen their revenues grow 9.5 times on average in just 1.5 years. All of these companies have achieved 3-4 times higher growth compared to their industry segments, and some early-stage investments have grown their revenues by 12 times in less than two years.
The fund focuses on early-stage fintech and SaaS (Software as a Service) platforms that serve the financial services industry. The potential for growth in India’s fintech sector is multi-decadal and is expected to be higher as there is a huge under-penetration seen across segments like domestic credit, mutual fund AUM and insurance.
“Overall, fintech as a segment is expected to grow at 11.1x times in the next 5-years, versus a growth of 3x expected in Indian online retail and 5.8x expected in Indian consumer tech,” the release stated.
It further added that over the last 5 years, 30% of the total funding deals have happened in the Online and Retail space and only 17% of the total funding deals has happened in fintech, giving a huge opportunity to fintech focused funds.
