New Delhi, Jun 19 (KNN) Non-banking financial company Techfino has raised Rs 65 crore in funding from Stellaris Venture Partners and Saison Capital, the venture capital arm of Tokyo-listed financial services firm Credit Saison.
The tech-enabled NBFC plans to utilise the capital to expand its branch network, enhance its technology platform, and scale its secured lending operations targeting micro, small, and medium enterprises.
The Bengaluru-based company specialises in providing Loan Against Property services to MSMEs operating in Tier II and III cities across Karnataka, Gujarat, Madhya Pradesh, and Andhra Pradesh.
Techfino operates through a branch-driven model and also offers education loans via a business-to-business-to-consumer approach through partnerships with educational service providers.
The company’s MSME loan products typically range from Rs 8 lakh to Rs 12 lakh.
Founded in 2019, Techfino was established by three financial services veterans: Jayaprakash Patra, formerly of ICICI Bank and ING; Rajesh Panda, who previously worked at Standard Chartered; and Ratikant Satapathy, an ex-Bajaj Finance executive.
The company has achieved significant milestones since its inception, having disbursed over 100,000 loans and accumulating more than Rs 200 crore in assets under management.
According to co-founder Rajesh Panda, the funding addresses a substantial market opportunity in India’s underserved MSME sector.
He noted that while 640 million MSMEs are registered in India, approximately 390 million remain outside the formal credit system.
This segment, particularly in rural and semi-urban markets, generates an estimated quarterly credit demand of Rs 200,000 crore, presenting opportunities for specialised lenders given the limited presence of traditional banks and large NBFCs in these markets.
Co-founder Ratikant Satapathy emphasised the company’s technology-driven approach, highlighting their internally developed platform that integrates multiple external APIs for data verification and underwriting processes.
This technological infrastructure has reportedly resulted in improved operational efficiency, enhanced data-driven risk assessment capabilities, and reduced turnaround times for loan processing.
The company has outlined ambitious growth plans for the coming years, targeting a doubling of its branch network within the current year while scaling both disbursements and assets under management.
Over the next three to five years, Techfino aims to establish a comprehensive secured lending business serving the underbanked MSME segment across its operational territories.
(KNN Bureau)
