New Delhi, May 29 (KNN) Saarathi Finance, a recently licensed non-banking financial company specialising in micro, small and medium enterprise lending, has successfully raised Rs 475 crore in its inaugural funding round.
The Mumbai-based NBFC plans to utilise the capital to enhance credit accessibility for underserved MSMEs across six states, with particular focus on semi-urban and rural markets in Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Rajasthan and Uttar Pradesh.
The Series A funding round, which has valued the company at over ₹900 crore, attracted significant institutional participation.
TVS Capital Funds led the investment alongside Lok Capital, Evolvence Equity Partners, Paragon Partners, and a consortium of angel investors, who collectively contributed approximately Rs 350 crore.
The remaining capital was invested by the company’s leadership team, including founder and chief executive officer Vivek Bansal and co-founder Sunil Daga.
The funding comes at a time when India’s MSME sector continues to face substantial credit challenges, with millions of small businesses lacking access to formal financing.
Saarathi Finance aims to address this persistent gap through its targeted approach to financial inclusion and rural economic development initiatives.
Vivek Bansal, Founder and CEO, Saarathi Finance, emphasised the company’s commitment to supporting India’s entrepreneurial ecosystem.
He stated that the firm is dedicated to empowering businesses across the country by providing comprehensive partnership beyond traditional credit offerings, focusing on supporting sustainable growth for its clients.
Industry leaders have expressed confidence in Saarathi’s business model and growth potential.
Gopal Srinivasan, Chairman and Managing Director, TVS Capital Funds, highlighted that Saarathi Finance represents the inclusive growth approach that aligns with his firm’s strategy of supporting micro and nano businesses, which he views as essential components of India’s economic expansion toward a USD 10-trillion economy target.
Rajat Bansal, Managing Director, Lok Capital, expressed enthusiasm about partnering with what he described as the next generation of market leaders in the MSME financing space.
Similarly, Abhishek Chandra, partner at Evolvence Equity Partners, affirmed his firm’s belief in Saarathi’s mission to bridge the substantial credit gap affecting underbanked MSMEs throughout India.
Siddharth Parekh, Senior Partner and Co-Founder, Paragon Partners, praised the leadership team’s credentials, noting Vivek Bansal’s established track record at InCred and Sunil Daga’s extensive experience in secured lending at Kotak Bank.
He described the management team as well-positioned to advance financial inclusion objectives in the Indian market.
Saarathi Finance distinguishes itself through a hybrid approach that integrates technology-driven solutions with personalised customer engagement strategies.
The company offers both secured and unsecured lending products specifically designed to meet the diverse requirements of MSME clients.
The firm’s operational framework emphasises flexible income assessment methodologies and streamlined loan processing procedures, aimed at improving credit accessibility for entrepreneurs who have historically been underserved by traditional financial institutions.
(KNN Bureau)
