DMI Alternatives raises $40 mn for investing in digital finance ecosystem

The firm's Sparkle Firm has invested $10 mn across various companies including M2P, Credgenics, Servify, Uni and Mobikwik

DMI Alternatives Pvt Ltd, the investment manager of DMI AIF and an associate company of DMI Finance Pvt Ltd announced the closure of a $40 million raise for The Sparkle Fund, which is part of its DMI Alternative Investment Fund.

The Sparkle Fund was set up in 2017 to explore investment opportunities in India’s rapidly growing digital finance ecosystem. Sparkle has invested $10 million across various companies including M2P, Credgenics, Servify, Uni and Mobikwik.

“The Indian digital ecosystem is in the middle of near-exponential growth and financial services is a key engine of that growth,” said DMI Alternatives spokesperson.

Within the Fintech ecosystem, Sparkle focuses on alternative lending, consumer finance, financial services IT,  payments, and AI-ML platforms to drive automation. A key differentiator for Sparkle is its strategic relationship with DMI Finance which gives its portfolio companies access to market and data insights, possibilities for product trials and model refinement, and the technological capabilities of DMI Finance’s digital financing platform. Sparkle will continue to make investments across all stages of its portfolio companies, from pre-Series A to significant growth rounds, and will expect to make more than 20 investments from this fund.