Veefin Solutions Limited, a prominent player in the information technology sector, has made a strategic move to expand its reach into the digital retail lending space. On September 16, 2024, its subsidiary Estorifi Solutions Private Limited signed a term sheet to acquire a 26% stake in Epikindifi Software & Solutions Private Limited, a company known for its innovative solutions in the digital lending domain. The acquisition, valued at ₹32.5 crores, is part of Veefin’s strategy to broaden its financial technology offerings, particularly in the burgeoning area of retail lending.

This move marks a significant shift for Veefin, which has already established itself as a leader in working capital solutions. With the inclusion of Epikindifi, the company now aims to tap into new revenue streams through digital retail lending products such as personal loans, green loans, Buy Now Pay Later (BNPL) schemes, credit cards, mortgage loans, and SMEs loans. The synergy between Veefin’s existing strengths in working capital management and Epikindifi’s retail lending automation solutions will allow the company to offer a comprehensive suite of products to banks and financial institutions. This acquisition will provide intelligent automation across key areas like identity verification, decision-making processes, lending, and collection systems for a wide array of retail financial products.

Epikindifi Software & Solutions, which was founded in 2018, has quickly grown to become a key player in the digital lending ecosystem in India. The company’s suite of automation products has empowered banks to streamline their operations, from onboarding customers to loan disbursement and collection. As of the financial year ending March 31, 2023, Epikindifi recorded a turnover of ₹13 crore, a substantial increase from previous years, reflecting its robust business model and growing client base.

The acquisition will be executed over a 90-day period, with the final consideration being a combination of cash and share swap. Veefin’s management has stated that the acquisition will not involve any related party transactions, ensuring that the deal remains at arm’s length and is purely a strategic investment aimed at enhancing its product offerings.

With the growing demand for digital financial services, particularly in the post-pandemic era, this acquisition positions Veefin at the forefront of the digital lending revolution. Financial institutions are increasingly relying on automation to handle the complexities of retail lending, and Veefin, through Epikindifi, will be able to provide comprehensive solutions that cover the entire lending cycle—from identity verification to loan collection.

The acquisition aligns perfectly with Veefin’s broader strategy of expanding into high-growth fintech segments, and it underscores the company’s commitment to driving innovation in the financial services industry.

Looking ahead, Veefin’s entry into the digital retail lending market is expected to create new opportunities for the company, particularly as more banks and financial institutions in India and abroad seek to adopt automation solutions to enhance operational efficiency and customer experience.

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