IIFL Fintech Fund has closed its second fund after raising Rs 200 crore as it aims to invest in the next generation fintechs of India including in the generative artificial intelligence space.  

“Our objective in IIFL Fintech Fund-Series-II is to continue to focus on identifying future market leaders in each of the segment that we would invest in. Through our Series – II, there is a special focus on generative AI in financial services space. Generative AI is picking up pace, and is likely aid further aid the growth of the financial services space," Mehekka Oberoi Kohli, fund manager, IIFL Fintech Fund said.

Set up in 2021, IIFL Fintech Fund aims to invest in early-stage fintechs that IIFL as a group could collaborate with as well.  Over the last three years, the Series-I of the fund boasts of 14 investments made across various segments in fintech. The portfolio comprises of Leegality, FinBox, DataSutram, Finarkein Analytics, Finvu, Trendlyne, Insurance Samadhan, Xtracap Finance, Castler, Vitra.Ai, EasyRewardz, Multipl, Riskcovry, TrustCheckr (sold to TrueCaller).

The portfolio has delivered a 22.5X revenue growth, in the last three years, 40% of the portfolio is EBIDTA positive, and the fund boats of 0% write-off/Deadpool. 

Prakash Bulusu, Joint CEO, IIFL Capital Services limited said, “We have seen very good response from HNIs, UHNIs and family offices for our IIFL Fintech Fund Series-II. Considering that India’s fintech is the only segment which is expected to grow 11X vs Indian online retail and Indian consumer tech where the expected growth is 3X and 5.8X respectively, the interest received for the fund was palpable."