New fund · Financial Services

IIFL Fintech Fund closes Series II at ₹500 crore

By Startup Enthusiast · 20 January 2026

What they do

IIFL Fintech Fund invests in early to growth stage fintech companies

The fund raised ₹500 crore from domestic family offices and ultra-high net worth individuals

It targets 20-25 startups with a focus on generative AI for financial services

IIFL Fintech Fund announced the final close of its Series II fund on January 20, 2026.
The total size of the new fund is ₹500 crore.
Capital was raised from domestic family offices and UHNIs (ultra-high-net-worth individuals).
This follows a first close of ₹200 crore in January 2025.
The fund aims to deploy capital into 20-25 startups.
20-25% of the corpus will be allocated for follow-on investments in top performers from Fund I.
Five ventures are already backed by this specific series.

The fund focuses heavily on Generative AI applications for financial services.
It targets sectors including lending, payments, wealthtech, insurtech, compliance, and embedded finance.
The setup allows portfolio companies to use IIFL's customer base for scale.
Sandbox validation helps startups test products before full deployment.

The fund was set up in 2021 to invest in early-stage fintechs.
It aims to foster collaboration between startups and IIFL.
Fund I had a final close of ₹200 crore in 2022.
Fund I achieved an exit when TrustCheckr was sold to Truecaller.
FinBox had a partial exit with a 5x multiple on invested capital.
Current portfolio includes GrayQuest, Fundamento, Knight Fintech, and Leegality.
Previous portfolio included DataSutram, Finarkein Analytics, Finvu, and Trendlyne.
Other past investments were Insurance Samadhan, Xtracap Finance, Castler, and Vitra.ai.
Additional past holdings include EasyRewardz, Multipl, and Riskcovry.

Domestic family offices (investor) — Provided capital for the Series II fund.
UHNIs (investor) — Ultra-high-net-worth individuals provided capital for the Series II fund.