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IIFL Fintech Fund, a two-year-old early-stage fund backed by the IIFL Group, said it has invested across 14 portfolio companies with a 0% deadpool rate and 40% of its portfolio being EBITDA positive.

The fund has achieved an 80% Internal Rate of Return (IRR) on its first exit in less than 18 months.

Its overall portfolio has an IRR of 24% and a Total Value Paid-In (TVPI) of 1.35X, with over $100 million in follow-on funding secured post-IIFL’s investment.

The portfolio’s average revenue growth is 9.5X over 1.5 years, outpacing their segments by 3-4 times, with some early-stage investments experiencing 12X growth in less than two years.

“Our fintech-focused fund follows a collaborative approach. We just don’t invest capital, we partner with companies in their product development, business & GTM Strategies, talent hiring and financial discipline. This helps us identify the strength of the product early on and map the business potential that it has,” Mehekka Oberoi, Fund Manager, IIFL Fintech Fund said.

The fund’s strategy focuses on early-stage fintechs and SaaS platform players with use cases in the financial services industry.

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The IIFL Group launched the fintech fund in August 2021 with a corpus of Rs 210 crore with sponsorships from two group companies—IIFL Finance and IIFL Securities.

The fund aims to invest in early-stage Fintechs and SaaS platform players with financial services industry use cases. The fund has made investments in various companies over the past year, including Riskcovry, Insurance Samadhan, Castler, Easyrewardz, Multipl, Finarkein Analytics, Xtracap Finance, and Data Sutram.

“About 91% of the fund’s deals are proprietary in nature and follow a strong filtration criterion. Only 1% of the deals reach the investment stage. For identified companies we remain partners with them from tech deployment to revenue acceleration stage (Rs 100cr ARR) and beyond,” Oberoi said.