Saarathi Finance, a newly licensed non-banking financial company (NBFC) focused on empowering micro, small, and medium enterprises (MSMEs), has successfully raised ₹475 crore in its Series A funding round. The capital infusion aims to bridge the credit gap for underserved businesses, particularly in semi-urban and rural regions across Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Rajasthan, and Uttar Pradesh.
Strategic Investment & Growth Plans
The funding round was led by TVS Capital Funds, Lok Capital, Evolvence Equity Partners, and Paragon Partners, alongside a group of angel investors, collectively contributing ₹350 crore. The remaining capital was infused by founder and CEO Vivek Bansal and co-founder Sunil Daga, reinforcing their commitment to the venture.
Financial Inclusion & Lending Model
Saarathi Finance aims to revolutionize MSME lending by offering both secured and unsecured loans, tailored to the unique needs of entrepreneurs. The company’s technology-driven approach ensures flexible income assessment and rapid loan processing, making credit more accessible to businesses traditionally overlooked by formal financial institutions.
Industry Impact & Future Outlook
With a valuation exceeding ₹900 crore, Saarathi Finance is positioned as a key player in India’s MSME lending sector. The company’s mission aligns with India’s broader financial inclusion goals, supporting the nation’s journey toward a $10 trillion economy.
