IIFL Fintech Fund exits FinBox stake, realising a 5x multiple on tranche
Exit validates embedded-finance thesis; FinBox strengthens credit-rails commercial market position significantly
IIFL cites active support, product scaling and bank partnerships driving the realisation
Fund II achieves first close over ₹200 crore; targets generative-AI and fintech infrastructure
IIFL Fintech Fund has executed a partial exit from its stake in FinBox, realising a 5x multiple on the tranche and underscoring the fund’s thesis on rapid monetisation in India’s embedded-finance market.
Mehekka Oberoi, the fund manager, called the realisation “validation of our strategy of backing foundational fintech infrastructure,” and said it reinforced the team’s ability to identify high-growth businesses with strong fundamentals. The exit is the fund’s third meaningful realisation over the past year.
IIFL said it backed FinBox early and actively supported the company’s product scaling and commercial tie-ups with banks, NBFCs and fintech firms, helping position FinBox as a widely used provider of credit rails and embedded-finance capabilities. That market fit, the firm added, attracted investor interest that made the partial sale possible.
IIFL Exits
The outcome follows recent IIFL exits that the firm says delivered strong returns: a more-than-2x exit from Finarkein Analytics and roughly 80% returns on the sale of fraud-detection firm TrustCheckr to Truecaller in 2023.
IIFL Fintech Fund, launched in 2021, holds a focused portfolio across payments, analytics, data infrastructure and embedded credit, names include Leegality, DataSutram, Finvu, Trendlyne and Castler.
Meanwhile, IIFL is advancing a second vehicle. Fund II has achieved a first close with over ₹200 crore committed so far and will target the next generation of fintech startups, prioritising early-stage bets where strategic collaboration with IIFL’s broader businesses can accelerate adoption. The new fund lists interest areas such as generative-AI applications for financial services and foundational infrastructure plays.
Oberoi emphasised that IIFL Fintech Fund positions itself as an active partner, not just a capital provider, offering product and go-to-market support to help portfolio firms scale within India’s regulated financial channels and digital public infrastructure.
With multiple recent realisations and fresh capital under Fund II, the specialist vehicle says it is well placed to continue backing startups that can combine strong unit economics with systemic impact across India’s financial services ecosystem.
