Veefin Solutions has approved a ₹35 crore debt raise via privately placed non-convertible debentures to accelerate expansion, product development, and international growth. The move aligns with the fintech firm’s strategy to diversify funding beyond equity as it scales supply chain finance, trade finance, cash management, and digital banking solutions across key markets.
Debt issuance details and strategic rationale
The board cleared the private placement of 3,50,000 unrated, unlisted NCDs of ₹1,000 each. The capital will be deployed towards business growth, integration of recent acquisitions, and working capital needs as Veefin deepens its presence with banks and financial institutions in India and overseas.
Financial performance and outlook
For the first half of FY26, consolidated revenue rose 476.4% year-on-year to ₹110.03 crore. Profit before tax increased 149% to ₹10.38 crore, while profit after tax attributable to shareholders grew 103.5% to ₹7.17 crore.
On a standalone basis, revenue climbed 108.1% year-on-year to ₹26.38 crore, with standalone PAT up 351.3% to ₹6.44 crore. Management expects FY26 standalone revenue growth of 75%–85% and sees consolidated revenue rising 200%–300% as newly acquired businesses scale. The company is targeting a blended EBITDA margin of 30%–35% over the medium term.
Supply Chain Finance remains a core profit driver with EBITDA margins above 50%. Demand is also strengthening for trade finance, cash management, and internet banking platforms. Veefin’s global pipeline stands at approximately $45 million (around ₹400 crore), comprising 85 deals across 24 countries, including more than 35 active opportunities and 10 large mandates exceeding $2 million each.
Acquisitions and integration
Veefin has executed nearly ₹400 crore worth of acquisitions to broaden its product suite and deepen domain capabilities in banking technology. The acquisition of EpikIndifi, valued at around ₹125 crore through a cash-and-shares structure, added digital lending products across personal loans, green loans, BNPL, credit cards, mortgages, and SME loans.
Other acquisitions include Regime Tax Solutions, Nityo Infotech’s India business, and Singapore-based Walnut.AI, strengthening analytics and digital banking offerings. The company is also consolidating operations by merging subsidiaries GlobeTF Solutions and Estorifi Solutions into the parent entity, a scheme that has received NCLT approval. Unsecured creditors have backed the merger, participating secured creditors have approved it, and the remaining secured creditor has issued a No Objection Certificate.
Global expansion and partnerships
Veefin is expanding in South Asia through a partnership with IWS Holdings to serve Sri Lankan banks with digital financing solutions for MSMEs. In India, the company continues to scale via the PSB Xchange platform under an exclusive seven-year agreement, with Bank of India’s onboarding further extending reach across public sector lenders.
Capital markets plans and funding strategy
The company is preparing to migrate from the BSE SME platform to the BSE Main Board and is pursuing a direct listing on the NSE, moves expected to enhance liquidity and attract institutional participation. Prior to the latest debt raise, Veefin secured ₹136 crore in equity funding for product development and expansion.
While profitability has improved, the firm has prioritised growth investments and acquisitions, impacting operating cash flows and necessitating a balanced capital structure. The ₹35 crore NCD issuance underscores Veefin’s strategy to sustain momentum through a mix of debt and equity as it consolidates its position in India’s digital banking and fintech market.
