India-based alternative lender Indifi Technologies is targeting B2B startups with its latest financing service.
According to news from Business Standard on Tuesday (Dec. 5), Indifi is rolling out an invoice discounting line of credit, a debt financing solution designed specifically for B2B startups to accelerate cash flow. The service enables these Indian startups to access financing against their unpaid invoices to their larger corporate customers.
The company’s services are looking to address the cash flow gaps that many B2B startups can experience when, despite growth, they struggle because large corporate customers take longer to pay invoices. B2B startups often turn to equity capital to fill those cash flow gaps, the publication explained, but doing so is often time-consuming.
“Indifi is dedicated to solving the credit issues faced by small businesses across sectors in the country,” said the firm’s CEO and Co-Founder Alok Mittal in a statement. “Having spent over a decade as a VC and angel investor, I’ve seen several B2B companies use equity to fund working capital, as a result of which they are unable to realize their plans to scale up.”
While Indifi’s new working capital offering targets B2B startups, the company noted it is not targeting a particular industry, instead offering it to Indian businesses in an array of verticals, including technology and travel.
Its new offering follows about a year after Indifi announced $10 million in Series B funding raised. The investment round was led by Omidyar Network, while Accel Partners and Elevar Equity also participated. At the time, the company said the funds would, in part, be used to introduce new financing products.
India’s alternative finance market has seen steady growth in recent years. Last year, Biz2Credit said it would be expanding into the Indian market in a show of confidence for the nation’s alternative finance sector.