Key Takeaways
- Veefin's board approved issuing up to 3.5 lakh NCDs at ₹1,000 face value each, totaling ₹35 Cr
- The debt fundraise comes one day after shareholders unanimously cleared Veefin's mainboard listing proposal
- Veefin's FY26 revenue jumped 339% YoY to ₹345.1 Cr while net profit nearly doubled to ₹32 Cr
BSE SME-listed Veefin Solutions has received board approval to raise up to ₹35 Cr through non-convertible debentures. The supply chain finance software provider will issue up to 3.5 lakh NCDs at a face value of ₹1,000 each, in one or more tranches via private placement.
This is Veefin's second capital raise since its 2023 SME listing. Last year, the company's board approved a ₹94 Cr fundraise through a preferential issue of equity shares and convertible warrants. The NCD route lets Veefin access fresh capital without diluting existing shareholders.
Why raise debt instead of equity?
NCDs are corporate bonds that cannot be converted into equity shares. For a company with Veefin's growth trajectory, debt financing preserves shareholder ownership while still funding acquisitions, working capital, and expansion plans. The board has authorized undisclosed persons to finalize the terms, including interest rates and maturity schedules, which will determine the true cost of this capital.
The timing is deliberate. Just one day before the NCD approval, all 1.1 crore Veefin shareholders voted unanimously to clear a proposal for migrating from the BSE SME platform to the mainboard. Stock exchange clearance is still pending, but the migration would mark a significant milestone for a company listed on the SME board since 2023.
What's driving Veefin's expansion?
Founded in 2020 by Gautam Udani and Raja Debnath, Veefin builds supply chain finance and digital lending software for banks, NBFCs, fintech startups, and enterprises. The company claims over 100 banking and NBFC clients on its platform.
Over the past year, Veefin has moved beyond its core lending software business through acquisitions. Recent stakes include digital marketing firm White Rivers Media, GenAI startup Walnut AI, and lending enablement platform EpikInDiFi. The strategy: broaden its fintech software offerings and cross-sell to existing clients.
The acquisition spree shows in the financials. Veefin's revenue from operations jumped 339% year-over-year to ₹345.1 Cr in FY26. Net profit nearly doubled to ₹32 Cr. Shares closed at ₹305.25 on the BSE on July 23, up 0.78%.
What does mainboard migration mean for Veefin?
SME platforms exist for smaller companies with lower compliance requirements. Migration to the mainboard typically signals that a company has outgrown SME thresholds in terms of scale, financial performance, and market presence. For Veefin, mainboard listing would increase visibility among institutional investors and potentially improve liquidity.
The unanimous shareholder vote suggests confidence in management's growth strategy. Still, stock exchange approval remains pending, and the timeline for migration is unclear.
Logicity's Take
Veefin's debt-over-equity choice signals management confidence in near-term cash flows. With 339% revenue growth and a diversified acquisition strategy, the ₹35 Cr NCD raise looks modest relative to the company's scale. The real story is the mainboard migration: if approved, it positions Veefin to compete for institutional capital against larger fintech software players like Perfios, CredAvenue, and M2P. For finance teams evaluating lending infrastructure vendors, Veefin's aggressive M&A strategy means its product suite is expanding fast, but integration risks come with that pace.
Veefin's recent capital raises
| Year | Instrument | Amount | Purpose |
|---|---|---|---|
| 2023 | SME IPO | Listed on BSE SME | Initial public offering |
| 2025 | Preferential Issue | ₹94 Cr | Equity shares and convertible warrants |
| 2026 | NCDs | Up to ₹35 Cr | Private placement debt |
Frequently Asked Questions
What are non-convertible debentures (NCDs)?
NCDs are debt instruments that companies issue to raise capital. Unlike convertible debentures, NCDs cannot be converted into equity shares, so they preserve existing shareholder ownership while providing funds for business expansion.
When will Veefin migrate to the mainboard?
Shareholders have approved the migration, but stock exchange clearance is still pending. The company has not disclosed a specific timeline for completing the move from BSE SME to the mainboard.
What does Veefin's software do?
Veefin develops supply chain finance, loan origination, and loan management software for banks, NBFCs, and fintech companies. The platform helps lenders automate credit workflows and manage working capital financing.
How much has Veefin raised since going public?
Since its 2023 SME listing, Veefin has raised ₹94 Cr through a preferential issue in 2025 and received board approval for up to ₹35 Cr in NCDs in July 2026.
Need Help Implementing This?
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Source: Inc42 Media / Team Inc42
Manaal Khan
Tech & Innovation Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
