Kaleidofin announces $5.3 million equity infusion by IDH Farmfit Fund

Chennai-based Fintech firm Kaleidofin Private Limited has received an equity infusion of $ 5.3 million from the IDH Farmfit Fund — a blended finance impact fund focused on smallholder value chains. This brings the equity infusion in the current round to $ 19 million. The company had earlier announced an investment of $ 13.8 million led by Rabo Partnerships which also saw investment from existing investors – Michael & Susan Dell Foundation, Oikocredit, Omidyar Network India and Flourish ventures.

The investment will help Kaleidofin scale its lending portfolio and expand credit scoring, middleware and risk services through selected partnerships. This investment takes the total funds raised by Kaleidofin since inception to $ 42 million.

Kaleidofin and IDH Farmfit Fund will collaborate to drive financial inclusion by expanding access to financial services for smallholder farmers, including those in dairy, agri-allied sectors, agri workers, and agribusinesses. A key focus of this partnership will be the development of a specialized ki score, a credit health assessment product designed to cater to the unique needs of the agricultural sector. This initiative will transform agri-lending by moving beyond generic term loans to tailored financial products for animal husbandry, farm equipment, automation, sustainable agriculture, and climate-friendly farming practices.

“Smallholder farmers form an important part of the economy, yet they remain vastly under-served by formal financial services. Through our collaboration with IDH Farmfit Fund, we aim to change this by creating specialized financial products that cater to the unique needs of farmers,” said Sucharita Mukherjee, Co-Founder and Chief Executive Officer, Kaleidofin.

Som Toohey, Investment Director, IDH Investment Management added: “Enhanced underwriting and tailoring of smallholder farmer loans, coupled with more efficient origination and distribution, can catalyse the flow of appropriate credit to this under-served segment across India and other markets.”

Established in 2017, Kaleidofin provides financial solutions for low-income customers/businesses working in the informal economy via the Kaleidofin platform. In India, the platform has unlocked debt capital of cumulatively over $ 4.5 billion for over 7 million customers and small enterprises working in the informal economy, since 2020. The main customers of the company are small and marginal farmers, women- led enterprises and nano enterprises.