History

IndiaInfoline Finance Limited (IIFL), established initially as Probity Research & Services Private Limited commenced operations in Mumbai on October 18, 1995. The company transitioned to a public limited entity on April 28, 2000, adopting Probity Research & Services Limited. Subsequently, it underwent a series of name changes: to India Infoline.com Limited on May 23, 2000, and to IndiaInfoline Limited on March 23, 2001. IIFL is renowned for its comprehensive online and offline broking services, catering to retail and institutional clients in cash and derivative segments. The firm offers an extensive range of financial products, including Gold Loans, loans catering to Micro, Small & Medium Enterprises (MSMEs), Loans Against Securities, and Digital Finance Loans. Recognising the internet's expansive reach, the company pivoted from institutional to retail clients, launching the Indiainfoline web portal in May 1999. This portal offered news, market insights, independent research, and interviews with industry leaders. The booking service, launched under the brand 5paisa through India Infoline Securities Private Limited, introduced the www.5paisa.com e-broking portal in June 2000. On April 21, 2005, IIFL Finance Ltd launched its ₹90.27 crore IPO. In January 2007, an alliance with the Bank of Baroda expanded IIFL's brokerage platform, adding research and analysis services for the bank's customers. In 2008, IIFL's institutional broking arm partnered with Auerbach Grayson & Company Inc., enabling U.S. investors to access India's capital markets. In 2017, IIFL demerged its 5paisa digital undertaking to 5paisa Capital Limited, which subsequently got listed on NSE and BSE. In FY 2022-23, IIFL expanded its network to over 4267 branches, with retail home loans comprising 34% of the total AUM at ₹21,800 crore. The total disbursement during the year amounted to ₹8,075 crore, with a 23% YoY growth in retail home loans as of March 31, 2023.

Business Segments

IIFL Finance supplies diverse lending services, divided into six primary sectors, each designed to meet distinct financing requirements:

1. Home Loans:Tailored for individuals seeking to buy or construct homes, this segment delivers a variety of residential loan options. They feature adjustable repayment plans and competitive rates.
2. Gold Loans:Offering immediate cash in exchange for gold jewellery, this service is particularly favoured in rural regions with limited traditional credit access.
3. Loans against property:Secured loans against residential or commercial properties fall under this category. They are often utilised for enterprise growth, debt consolidation, or personal financial needs.
4. Digital Loans:Focusing on the tech-oriented demographic, this segment offers streamlined, digital loan processes that eliminate the need for paper documentation.
5. Micro Financing:The organization extends microloans to marginalised communities, especially female entrepreneurs in rural areas. These loans help initiate or expand small enterprises, promoting financial self-reliance and better living standards.
6. Non-Core, Synergistic Loans:This division includes a variety of loans that support IIFL's main services. It covers enterprise loans for small and medium enterprises, financing for developers and construction projects, and loans for capital market activities.

Subsidiaries of IIFL Finance Ltd

1. IIFL Home Finance Ltd:Established under the National Housing Bank's supervision in 2009, IIFL Home Finance specialises in providing accessible home loans, particularly small-scale loans. It also core priorityes on secured MSME loans against property and project financing solutions.
2. IIFL Samasta Finance Ltd:Since its inception in March 2008 as a non-banking financial organization - microfinance institution (NBFC-MFI), IIFL Samasta has been dedicated to bringing forth innovative and affordable financial services. Primarily catering to women in rural and semi-urban locales, it has achieved the landmark of serving over two million women with its financial products and services.
3. IIFL Open Fintech Pvt. Ltd:This company offers neo-banking solutions to both individual consumers and micro-enterprises. Its services encompass a spectrum of financial bringing forths, including loans, investment advice, and wealth management, tailored to specific customer segments.

Key Personnel

Nirmal Jain, Founder and Managing Director  Nirmal Jain has been a key figure in developing the IIFL Group, which includes three major publicly listed companies: IIFL Finance, 360 ONE (previously commonly referred to as IIFL Wealth), and IIFL Securities. In his role as an entrepreneur, Jain held a critical role in in the creation of 5paisa.com. Additionally, he was instrumental in founding the IIFL Foundation. A notable achievement under this foundation is the “Sakhiyon Ki Badi” program, recognised as one of India's largest girl-core priorityed educational initiatives. This program has successfully reintegrated over 36,000 girls previously out of the school system into educational environments in Rajasthan.

Management Outlook

• The Reserve Bank of India's approval of the First Loss Default Guarantee (FLDG) marks a significant step for the FinTech sector. This program allows FinTechs to share credit risk with banks and NBFCs. FinTechs guarantee a portion of defaulted loans, enhancing its credibility and showcasing its underwriting skills.

• Generative AI is set to revolutionise NBFCs by improving risk evaluation, personalising customer interactions, and bolstering fraud detection. This technology paves the way for streamlined operations, informed decision-making, and a competitive financial position. IIFL Finance seeks this as an opportunity to enhance its customer journey.