Veefin Solutions Limited IPO

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Mumbai-Based Company Revolutionizes Digital Lending and Supply Chain Finance Solutions

In today’s fast-paced business landscape, managing cash flow and optimizing working capital are crucial for success. Recognizing this need, a Mumbai-based company has emerged as a leader in the field of digital lending and supply chain finance (SCF) technology solutions. With a unique offering designed with a user-led approach, data analytics, and expertise from experienced bankers, the company is transforming the way financial institutions operate in the digital era.

Supply chain finance, a financial tool aimed at enhancing cash flow and working capital management, lies at the core of the company’s product solutions. By offering unparalleled flexibility and prompt configuration, their SCF product and platform enable financial institutions to tailor loan products according to the unique requirements of their clients. This capability eliminates the reliance on third-party execution and empowers bankers to provide highly customized solutions promptly.

One of the key benefits of supply chain finance is its ability to improve relationships between buyers and suppliers. By allowing buyers to pay for goods and services upfront, it mitigates the risk of non-payment and enhances the overall efficiency of the supply chain. Moreover, supply chain finance can also reduce the cost of capital for both buyers and suppliers, leading to improved profitability and competitiveness for businesses.

The company recognizes the challenges faced by suppliers due to extended payment periods from their customers, often resulting in high-cost capital requirements. This cost burden can make the supply base financially unstable, increasing the risk of failure and hindering the development of resilient and sustainable supply chains. Supply chain finance plays a crucial role in alleviating these financial burdens by providing suppliers with much-needed liquidity, ultimately enhancing the efficiency and stability of the entire supply chain ecosystem.

Furthermore, supply chain finance is instrumental in fostering the growth of small and medium-sized enterprises (SMEs). These loans offer vital funding to bridge financial gaps, increase liquidity, and optimize working capital for SMEs. With the rise of digital SCF solutions, even micro, small, and medium-sized enterprises (MSMEs) at the end of global supply chains can access these innovative financing options. Leveraging existing relationships and data flows within the supply chain ecosystem, the company’s products enable financial institutions to deliver high-quality, low-risk financing options to their clients effectively.

In collaboration with financial institutions worldwide, this Mumbai-based company aims to deliver innovative and best-in-class digital lending and supply chain finance technology solutions. By combining cutting-edge technology, data analytics, and the expertise of experienced bankers, they provide a scalable platform that empowers financial institutions to stay ahead of the curve and drive business growth.

In conclusion, supply chain finance has become an indispensable tool for businesses seeking to manage cash flow, improve working capital, and foster growth. With its unique blend of digital lending and supply chain finance solutions, the Mumbai-based company is revolutionizing the way financial institutions operate, offering unmatched flexibility and customization. As businesses navigate the ever-evolving economic landscape, partnering with this company proves to be a strategic move towards staying competitive and achieving long-term success.

Objects of the Veefin Solutions Limited IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: i. Global sales and marketing expenditure, ii. Developing new products or enhancement and maintenance, upgrading or updating existing products, and iii. General Corporate Purpose.

Veefin Solutions Limited IPO Details:

Open Date: Jun 22 2023
Close Date: Jun 26 2023
Total Shares: 5,699,200
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 46.73 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 82 Per Equity Share
Listing At: BSE SME
Listing Date: Jul 05 2023

Promoters And Management:

Mr. Raja Debnath, aged 47 years, is the Promoter, Chairman and Managing Director of the Company. He holds Masters’ Degree in Business Administration from University of Oxford, Masters’ degree in Management Studies from Jamnalal Bajaj Institute of Management Studies and Bachelors’ degree in Engineering (Mechanical) from University of Pune. He has an experience of around 20 years in the Digital Technology Services, Banking and Consultancy. In his previous stint, he has worked on senior management roles for large corporations like GE Money, Kotak Mahindra Bank, Ernst and Young and International Finance Corporation. Under his leadership, the Company has built a strong team providing a financial products and digital solutions to various Clients. He has real-world banking experience, which lends to better implementation of advisory projects in the company. He is responsible for crafting and implementing the overall strategy of the company, which includes overseeing the development and launch of new products and services. In addition to his strategic responsibilities, he is also responsible for driving growth and partnerships for the company. He identifies potential partners and collaborators who can help the company expand its reach and market presence, and works closely with them to establish mutually beneficial relationships. Mr. Gautam Vijay Udani, aged 38 years, is the Promoter and Wholetime Director of the Company. He holds Masters’ degree in Management Information System from New Jersey Institute of Technology, New Jersey, USA and a Bachelor’s Degree in Engineering (Computer Engineering) from University of Mumbai. In 2010, he founded Infini Systems, a startup that specialised in creating software products for the education, real estate, and e-commerce industry. He has floated several successful start-ups in E-commerce, E-Learning and Financial Technology. He also served as the CoFounder of “Mad Orders”, which went down in history as India’s maiden midnight food delivery platform. His experience with solution building in multiple domains has helped sharpen understanding of Technology application in Business and Finance of the company. He works diligently behind the scenes, making optimum use of the resources and skilfully solving problems. He is responsible for a range of key functions, including Engineering and Delivery, Quality Assurance of the Product, Finance and Accounts, Fund Raising, and Human Resources and he is also responsible for ensuring that the company’s products and services are delivered to customers on time, on budget, and with the highest level of quality. He oversees the development process, manages the engineering team, and ensures that the company's products meet the needs of customers in a constantly evolving market. He oversees the Quality Assurance function of the company, ensuring that every product meets the highest standards of quality and reliability. He works closely with the engineering team to identify and address any potential defects or issues that could impact the customer experience Mr. Ajay Babu Rajendran, Management Studies from University of Mumbai and a Bachelors’ Degree in Engineering (Chemical) from The Maharaja Sagajirao University of Baroda. He is the Chairman of Meraki Group of Companies and Sobha Engineering and Contracting LLC in Dubai, involved in Real Estate Development, Construction, related manufacturing and fabrication facilities as well as Education. He is the Chairman of the three Education Business Schools-North London Collegiate School Dubai, North London Collegiate School Singapore and Hartland International School. He leads a team of more than 350+ staff in the education business with over 2200 students across Dubai schools. His experience in the entire spectrum of real estate, construction, facilities management, education operations, and business strategy and planning while keeping ‘customer’ at the centre of everything has led to setting up one of the top premium IB schools of Dubai within 3 years of its operations.

Financials of Veefin Solutions Limited IPO:

A. Balance Sheet
Particular (In Lakhs) Mar-21 Mar-22 10MFY23
Equity Share Capital 1.04 1.24 1,833.79
Reserves 103 886 2,402
Borrowings 474 346 36
Trade Payables 4 84 84
Other Liabilities 298 248 383
Total Liabilities 775 678 504
Net Block 5 21 59
Investments 0 9 11
Other Assets 850 1,418 3,443
Total NC Assets 855 1,448 3,513
Receivables 9 75 749
Cash & Bank 2 2 321
Other Assets 13 40 157
Face value 10 10 10
B. Profit & Loss Statement
Particular (In Lakhs) Mar-21 Mar-22 Mar-23
Sales 76 619 1,358
Employee Cost 48 205 496
Other Expenses 20 347 369
Other Income 5 0 54
EBITDA 13 68 547
EBITDA Margin 16.60% 10.94% 38.77%
Depreciation 2 17 22
Interest 0.05 2 3
Profit before tax 11 49 580
Tax -3 20 126
Net profit 14 29 397
C. Cash Flow Statement
Particular (In Lakhs) Mar-21 Mar-22 10MFY23
Cash From Operating Activity
Profit From Operation 41 74 489
Receivable -9 -66 -673
Payable 4 80 0.3
Loans And Advances -9 9 -6
Other WC Items 97 -42 -3
Working Capital Changes 83 -18 -682
Direct Taxes 0 1 8
Net Cash Inflow from Operating Activity 124 55 -201
Cash from Investing Activity
Fixed assets purchased -857 -601 -2,081
Investments purchased 0 9 2
Other investing items 172 -70 -102
Net cash inflow from investing activities -686 -680 -2,185
Cash from Financing Activity
Proceeds from shares 1 0.2 0.3
Proceeds from borrowings 474 0 0
Repayment of borrowings 0 127 310
Intrest paid fin -0.05 -2 -2
Other financing items 89 754 3,018
Net Cash Flow 2 -0.01 320

Comparison With Peers:

* There are no listed companies in India and abroad that is engaged in developing a similar line of product solution to that of Company *

Recommendation on Veefin Solutions Limited IPO:

Review and Recommendation of Veefin-Solutions SME IPO by IZ team 4/10 A) Business Model of Veefin-Solutions 1. Company is a Digital Lending and Supply Chain Finance (SCF) technology product solutions provider.

2. Offers unique technology product solutions designed with a user-led approach, data and analytics, and built by experienced bankers for bankers.

3. Provides SCF product and platform that are highly flexible and configurable to meet specific client needs without relying on third-party execution.

4. Offers cutting-edge technology products with unmatched flexibility, enabling quick and efficient configuration and implementation.

5. Empowers bankers and financial institutions to offer highly customized loan products, both regular and transaction-based, based on clients' unique requirements.

6. Works with a wide range of clients globally, including Banks, Non-Banking Financial Institutions, FinTech, Marketplaces, and Corporates.

7. Helps clients digitize, automate, and scale across SME lending.

8. Acquired the product business undertaking of Infini Systems Private Limited to expand product offerings in digital lending and supply chain finance technology solutions. Acquired software products include Supply Chain Finance Software, Loan Origination System, Loan Management System, Collection Management System, Sales CRM, and Digital Tools for SME clients of banks.

B) Pros 1. Extensive Experience: Mr. Raja Debnath, the Chairman and Managing Director of the company, brings a wealth of experience in the Digital Technology Services, Banking, and Consultancy fields. With 20 years of experience, he has a deep understanding of these industries and can provide valuable insights and guidance to the company. 2. Excellent Growth : The Revenue of the company was Rs.80 lakh in Fy21 and same has increased to ~13 Crores in Fy23. In the same period PAT has also increased from 14 Lakh to ~4 Crores. 3. Asset Light Model: The company functions as an intermediary, utilizing their technology to establish a connection between banks, institutions, and clients, resulting in minimal costs incurred solely for software expenses. C) Cons 1. The trade receivables as of January 2023 amount to 7.48 Crores, which appears significantly higher, particularly when considering that it constitutes a significant portion of the total revenue of 11 Crores generated during the first 10 months of FY23. Consequently, this has resulted in negative cash flow from operations. 2. Asking Price/Earning is 42x. Highly overvalued. 3. Out of 48 Cr company is raising, 50% is OFS. OFS in a SME is always negative.

Lead Manager of Veefin Solutions Limited IPO:


Registrar of Veefin Solutions Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Veefin Solutions Limited Off No-601, 602 & 603, Neelkanth Corporate IT Park, Kirol Road, Vidhyavihar (West), Mumbai – 400 086 Phone: +91 9004917712 Email: Website:

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