IIFL Fintech Fund marks final close of second vehicle at Rs 500 crore
20 Jan 2026, 02:36 PMThe fund has earmarked around 20-25% of the corpus for follow-on investments in top-performing portfolio companies from its first fund.
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IIFL Group-backed IIFL Fintech Fund has marked the final close of its second fund at Rs 500 crore.
Domestic family offices and high net worth (HNIs) individuals came in as Limited Partners (LPs), or investors, in the fund.
The fund will invest in early to growth-stage fintech startups, with particular emphasis on companies leveraging generative artificial intelligence (GenAI) to build financial services products.
It will focus on segments including lending, payments, compliance, wealthtech, insurtech, and embedded finance, with plans to back 20 to 25 startups.
Additionally, the fund has earmarked around 20-25% of the corpus for follow-on investments in top-performing portfolio companies from its first fund.
The fund had announced the first close of its second fund at Rs 200 crore in January 2025 and has already deployed capital in five startups. These include education-focused fintech GrayQuest, voice AI startup Fundamento, banking infrastructure company Knight Fintech, and a secondary share purchase in document infrastructure firm Leegality, among others.
IIFL Fintech Fund was established in 2021 with the objective of investing in early-stage fintech companies that could potentially collaborate with the IIFL Group.
IIFL Fintech Fund previously closed its first fund in 2022 after raising Rs 200 crore. It other portfolio companies include FinBox, DataSutram, Finarkein Analytics, Finvu, Trendlyne, Insurance Samadhan, Xtracap Finance, Castler, Vitra.ai, EasyRewardz, Multipl, Riskcovry, and TrustCheckr, which was acquired by Truecaller.
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