IIFL Finance Limited, through its wholly-owned subsidiary IIFL Fintech Private Limited, has announced the acquisition of a significant stake in Xtracap Fintech India Private Limited. The acquisition, approved at a board meeting on April 30, 2026, involves a total cash consideration of approximately ₹37.7 crore.
The acquisition will be executed in two stages. The first stage involves a secondary acquisition of equity shares for an aggregate consideration of approximately ₹25.7 crore. The second stage includes a primary infusion of capital amounting to approximately ₹12 crore through subscription to equity shares. Upon completion of these transactions, IIFL Fintech Private Limited will hold an 87.8% equity shareholding in Xtracap Fintech India Private Limited.
Xtracap Fintech, engaged in supply chain financing, reported a turnover of ₹7.03 crore for the financial year ending March 31, 2025. The company is currently in a scale-up phase, providing anchor-led, invoice-linked credit solutions to distributors and retailers across various sectors in India.
The acquisition aligns with IIFL Group’s core financial services business and aims to enhance its presence in the supply chain financing segment, which is considered a structurally underserved trade credit market in India. This move is expected to strengthen IIFL’s MSME lending capabilities, diversify its portfolio, and improve return metrics over the medium term.
The transaction is classified as a Related Party Transaction, with IIFL Fintech Private Limited already holding an 18.8% equity stake in Xtracap Fintech. However, the acquisition is proposed to be conducted on an arm’s length basis. The completion of the acquisition is anticipated within 45 days, subject to the execution of definitive agreements and customary conditions precedent.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).