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MSME-focused digital lending platform Indifi Technologies turned profitable in FY26 despite marginal revenue growth, as a sharp decline in impairment costs and tighter control over operating expenses boosted its bottom line. Indifi’s revenue from operations increased only 3% year-on-year to Rs 371.1 crore in FY26 from Rs 360.4 crore in FY25, according to its financial statements filed with the Registrar of Companies (RoC). Founded in 2015, Indifi provides debt financing to MSMEs, with a focus on improving credit access for small businesses. The company offers loans across supply chain finance, startup lending, D2C businesses, and other lending products tailored to the financing needs of MSMEs. As per the company, it has served more than 1.6 lakh MSMEs across 400 cities. Including other non–operating income, its total income stood at Rs 386.85 crore during the year. Being a lending platform, interest earned on loans remained Indifi’s primary source of revenue, which accounted for 87% of its operating income, and increased only 2.4% to Rs 321.7 crore in FY26 from Rs 314.3 crore in the previous fiscal year. Revenue from the sale of services grew 19% to Rs 25.3 crore during the year. This included facilitation, service fees earned from lending partners and foreclosure fees. Other fees and commissions income also increased 11% to Rs 12.4 crore in FY26. On the cost side, finance costs remained Indifi’s largest expense at Rs 147.4 crore in FY26, compared with Rs 142.6 crore in FY25. For a lending business, these costs largely relate to the capital used to fund its loan book. Impairment on financial instruments nearly halved to Rs 55.3 crore from Rs 107.6 crore in FY25. In its press note, Indifi attributed the improvement to healthier credit performance, sharper customer selection and closer portfolio management, which helped reduce credit costs by nearly 40% during FY26. Employee benefit expenses also declined to Rs 79.9 crore, while legal and professional expenses stood at Rs 18.8 crore. Collection commission expenses, however, jumped 83% to Rs 17.4 crore from Rs 9.5 crore, led by higher costs related to loan collections. Overall, Indifi’s total expenditure declined 12% to Rs 376.8 crore in FY26 from Rs 426.7 crore in FY25. The sharp reduction in impairment and tighter control over operating expenses helped Indifi return to profitability, with Rs 5.2 crore in FY26 compared to a loss of Rs 45 crore in FY25. The company also said it completed four consecutive quarters of profitability during the year. During FY26, Indifi also expanded its portfolio across supply chain finance, startup lending, D2C loans, and secured lending. For FY27, the company plans to scale AI initiatives piloted during FY26, strengthen credit management and expand its product and digital lending capabilities.
document fetched 2026-10-06 02:57