Saarathi Finance, a newly licensed NBFC focused on micro, small, and medium enterprises (MSMEs), has successfully raised Rs 475 crore in its inaugural funding round. This major capital infusion aims to bridge the persistent credit gap faced by MSMEs, especially in India’s semi-urban and rural regions.
Backed by Leading Investors and Visionary Founders
The funding round was led by respected names in the investment world. TVS Capital Funds, Lok Capital, Evolvence Equity Partners, Paragon Partners, and a group of prominent angel investors together contributed around Rs 350 crore. The remaining amount was infused by Saarathi’s founders, Vivek Bansal and Sunil Daga, showcasing their deep commitment to the company’s mission.
With this Series A round, Saarathi Finance’s valuation has crossed Rs 900 crore, marking a strong debut for the company in India’s competitive NBFC landscape.
Focused on India’s Heartland
Saarathi Finance is dedicated to addressing the credit needs of MSMEs in underserved regions. The company will channel its funds towards entrepreneurs in Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Rajasthan, and Uttar Pradesh. These states, home to millions of small businesses, often struggle to access formal credit, limiting their growth and potential.
The company’s approach combines technology-driven solutions with personalized customer engagement. Saarathi Finance offers both secured and unsecured loans, with flexible income assessments and rapid processing, making credit more accessible for entrepreneurs who have traditionally been overlooked by banks and larger financial institutions.
Driving Inclusive Growth
Vivek Bansal, Founder and CEO, emphasized Saarathi’s commitment:
“We are committed to empowering Bharat’s entrepreneurs by providing more than just credit – a partnership that values and supports their growth. This funding milestone enables us to accelerate our mission, ensuring every stakeholder, from entrepreneurs to investors, is valued and cared for in our journey.”
Gopal Srinivasan, Chairman and MD of TVS Capital Funds, highlighted the broader impact:
“Saarathi Finance embodies the spirit of inclusive growth that aligns with our vision of supporting micro and nano businesses crucial to India’s journey towards a $10 trillion economy.”
A High-Calibre Team with Deep Experience
Saarathi Finance’s leadership brings decades of expertise from top financial institutions. Vivek Bansal previously led finance operations at InCred and Yes Bank, while Sunil Daga played a key role in building Kotak Mahindra Bank’s MSME lending division. Their combined experience positions Saarathi to become a market leader in secured micro-enterprise lending.
Bridging India’s MSME Credit Gap
India’s 70 million MSMEs contribute over 40% to the nation’s GDP, yet less than 20% have access to formal credit. Saarathi Finance aims to change this by providing tailored financial solutions and guidance, helping businesses overcome challenges and grow with confidence.