Saarathi Finance, a newly licensed greenfield non-banking financial company (NBFC) focused on India&rsquo;s micro, small, and medium enterprises (MSMEs), has successfully closed its first funding round, raising ₹475 crore. The capital will be used to address the significant credit gap in semi-urban and rural regions across states such as Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Rajasthan, and Uttar Pradesh.
The funding round was led by marquee investors including TVS Capital Funds, Lok Capital, Evolvence Equity Partners, and Paragon Partners, along with contributions from prominent angel investors. Together, they invested approximately ₹350 crore, while the remaining amount was infused by Saarathi&rsquo;s founder and CEO Vivek Bansal, and co-founder Sunil Daga. The Series A round values Saarathi Finance at over ₹900 crore.
&ldquo;This funding milestone enables us to accelerate our mission, ensuring every stakeholder&mdash;from entrepreneurs to investors&mdash;is valued and cared for. With heartfelt gratitude, we embark on this exciting journey,&rdquo; said Vivek Bansal.
Gopal Srinivasan, Chairman and MD of TVS Capital Funds, commented, &ldquo;Saarathi Finance embodies the spirit of inclusive growth aligned with our vision of supporting micro and nano businesses, crucial to India&rsquo;s path toward a $10 trillion economy.&rdquo;
Echoing this sentiment, Rajat Bansal, MD of Lok Capital, stated, &ldquo;We&rsquo;ve been engaged in secured micro-enterprise lending for over a decade and see innovation and capital as strong moats. We&rsquo;re excited to partner with Saarathi as next-generation leaders in this space.&rdquo;
With a strong focus on underserved MSMEs, Saarathi Finance aims to foster inclusive economic development and empower next-gen entrepreneurs across Bharat.
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Source : Indian Startup News

Saarathi Finance, a newly licensed greenfield non-banking financial company (NBFC) focused on India’s micro, small, and medium enterprises (MSMEs), has successfully closed its first funding round, raising ₹475 crore

Saarathi Finance Raises ₹475 Crore in Inaugural Funding Round to Boost MSME Lending