IIFL fintech Fund's 40% Portfolio EBIDTA Positive
IIFL Fintech Fund - India's only early-stage fintech-focused fund backed by a financial services conglomerate – the IIFL Group, has delivered a stellar performance showcasing strong investment acumen of the fund management team during turbulent industry scenario. The fund is over two-year old and is invested across 14 portfolio companies. It has a 0% Deadpool (Deadpool means failed startups) till now and 40% of its portfolio is EBIDTA positive.
The fund boasts of one exit which was made in less than 18 months delivering an 80% IRR. Fund's Portfolio Internal Rate of Return (IRR) stands at 24% and Total Value Paid-In (TVPI) of 1.35x.
Overall the portfolio companies have witnessed 100mn$ plus of follow-on funding post IIFL's investment.
Revenue growth reported by the portfolio is 9.5x in an average holding span of 1.5 years. All of these portfolio companies have delivered 3-4x higher growth than their respective segments growth. Some of the early stage investments that the fund had identified have seen a 12x revenue growth in less than 2 years.
Fund's strategy is to focus on early stage Fintechs and SAAS platform players that have use cases in the financial services industry. Fintech growth in India is multi-decadal and is expected to be higher as there is a huge under-penetration seen across segments: domestic credit (3x gap vs global), Mutual fund AUM (4.6x gap vs global) and Insurance (~1.6x gap vs global).
Overall, fintech as a segment is expected to grow at 11.1x in the next 5-years versus a growth of 3x expected in Indian online retail and 5.8x expected in Indian consumer tech. 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 has
