Indifi, an Indian digital lending startup, achieved profitability by focusing on MSMEs. Unlike many fintech unicorns posting losses, Indifi reported a net profit of INR 5.1 crore in FY23. Their success in the pandemic-era digital lending landscape is attributed to nuanced risk models. They assess factors like digitalization, underserved categories, and their ability to fill lending gaps. Indifi doesn't compete with banks in well-served sectors but targets niches, such as restaurants, with unique risk models. They've also prioritized lending to women entrepreneurs, addressing gender bias in traditional lending. Despite competition, Indifi sees significant room for growth, with plans to expand into supply chain finance, secured loans, insurance, payments, and wealth tech. The lending tech market is expected to grow substantially, offering opportunities for all players to contribute to financial inclusion and India's economic development.