New Delhi, May 13 -- IIFL Fintech Fund, the early-stage fintech investment vehicle of the diversified financial services group IIFL, has exited Finarkein Analytics Pvt Ltd and generated a two-fold return on its investment in the data analytics company.

The liquidity move comes two-and-a-half years after the fund divested its stake in fraud detection platform TrustCheckr to Swedish caller identification application Truecaller in October 2023 and clocked an 80% annualised return on its investment. The annualised returns from the Finarkein exit couldn't be ascertained.

IIFL Fintech Fund didn't disclose the amount it generated by exiting Finarkein. The fund had first invested in the startup in early 2022 and topped up its investment in August last year. It hadn't disclosed the amount it invested but VCCEdge data showed that it put in Rs 2.25 crore in 2022. The amount that it invested last year couldn't be ascertained.

VCCircle has, however, gathered that the fund exited through a buyback transaction with the company.

Finarkein's data and workflow orchestration platform allows enterprises to co-create data products on India's digital public infrastructure like the account aggregator ecosystem, Open Network for Digital Commerce-Financial Services, and Open Credit Enablement Network.

"With Finarkein also, we went beyond the business aspect to enhance their overall product and platform to ensure faster business adoption," Mehekka Oberoi, fund manager at IIFL Fintech Fund, said in a statement.

The fintech-focused investor launched its first vehicle in late 2021 with an aim to raise Rs 300 crore. It closed that vehicle in early 2023 after securing Rs 200 crore from group companies IIFL Finance and IIFL Capital.

The first vehicle invested in 13 companies. These included Leegality, FinBox, Trendlyne, Finarkein Analytics and Data Sutram, among others. The firm said eight of these 13 companies received follow-on funding from investors such as WestBridge Capital, Nexus Venture Partners and A91 Partners.

Earlier this year, IIFL Fintech Fund announced the initial closure of its second vehicle after raising more than Rs 200 crore. In a recent interaction with VCCircle, Oberoi disclosed that the fund's target was Rs 500 crore and that the firm was reaching out to more family offices and ultra-high-net-worth individuals to raise additional capital.

The new fund aims to deploy 20-25% of its corpus in the first vehicle's best-performing portfolio companies. Overall, it intends to invest in 30-35 companies, VCCircle has gathered. It has already made its first investment, in education-focused fintech GrayQuest, Oberoi said.

Published by HT Digital Content Services with permission from VC Circle.